Tether-Backed Twenty One Capital’s $458M Bitcoin Buy Boosts Treasury to 31,500 BTC

On May 13, 2025, Twenty One Capital, a Bitcoin-focused investment firm backed by Tether, Cantor Fitzgerald, and SoftBank, announced the acquisition of 4,812 Bitcoin (BTC) valued at approximately $458.7 million. This purchase, executed through Tether at an average price of $95,319.83 per BTC, marks a significant step in the firm’s strategy to amass a substantial Bitcoin treasury, positioning it as one of the largest corporate holders of the cryptocurrency.

Building a Bitcoin-Centric Public Company

Twenty One Capital was established through a special purpose acquisition company (SPAC) merger with Cantor Equity Partners, a Nasdaq-listed entity (ticker: CEP) sponsored by Cantor Fitzgerald. Launched in April 2025 with a plan to hold 42,000 BTC by the time of its public launch, the firm aims to emulate the Bitcoin accumulation model pioneered by Strategy. The company, led by Strike founder Jack Mallers as CEO, is majority-owned by Tether and its affiliate Bitfinex, with SoftBank holding a minority stake. Twenty One Capital’s shareholders gained ownership through Bitcoin deposits. According to a report from Financial Times, Tether contributed $1.5 billion in Bitcoin, SoftBank provided $900 million, and Bitfinex added $600 million.

The recent purchase is part of a broader plan to raise $585 million in additional capital through convertible senior secured notes ($385 million) and private investment in public equity (PIPE) financing ($200 million). These funds will primarily support further Bitcoin acquisitions, aligning with Twenty One’s mission to maximize Bitcoin ownership per share. Upon completion of the merger, the company will trade on Nasdaq under the ticker “XXI.”

“This acquisition is the first of many planned investments to grow our Bitcoin treasury,” said a Twenty One Capital spokesperson in a securities filing. “Our goal is to offer investors a unique vehicle for Bitcoin exposure while advancing adoption through financial products and media.”

Institutional Confidence in Bitcoin’s Future

Twenty One Capital’s purchase aligns with surging institutional interest in Bitcoin, fueled by a more favorable regulatory landscape in the United States. Following President Donald Trump’s inauguration in January 2025, the administration has signaled a pro-crypto stance, with actions such as the establishment of a strategic Bitcoin reserve and the dismissal of several Securities and Exchange Commission (SEC) lawsuits against crypto firms. Paul Atkins, sworn in as SEC Chair on April 21, is a crypto advocate. In his inaugural address, he pledged to replace the prior “regulation by enforcement” approach with a “rational, coherent” framework. At the SEC’s Crypto Task Force roundtable on May 12, he unveiled a three-part crypto regulatory strategy covering issuance, custody, and trading rules, promising a swift shift to clear regulations.

Twenty One Capital’s strategy mirrors that of Strategy, which holds 568,840 BTC worth nearly $58.9 billion and has seen its stock surge 3,547% since 2020. By offering investors exposure to Bitcoin’s price movements through shares rather than direct ownership, Twenty One aims to attract both traditional and crypto-native investors. The firm also plans to develop Bitcoin-native financial products, such as lending services, and produce Bitcoin-focused content to promote adoption. According to data from BitcoinTreasuries, Twenty One Capital holds 31,500 BTC, making it the world’s third-largest corporate Bitcoin holder, behind Strategy (568,840 BTC) and MARA Holdings (48,237 BTC).

Tether’s Strategic Role and Market Dynamics

Tether, issuer of the largest stablecoin USDT, played a key role in the transaction, purchasing 4,812 BTC on behalf of Twenty One Capital. Managing over $145 billion in reserves (including 99% of its U.S. Treasuries held with Cantor Fitzgerald), Tether has diversified by holding over 100,000 BTC. This move allows Tether to allocate its Bitcoin reserves to a publicly traded entity, potentially enhancing liquidity without open-market sales.

As of May 14, 2025, Bitcoin’s market capitalization stands at approximately $2.058 trillion, with a 24-hour trading volume of $32.1 billion. Bitcoin’s market capitalization has surpassed Google, ranking as the world’s sixth-largest asset.

Leadership and Industry Connections

Twenty One Capital’s leadership and backers highlight its deep ties to traditional finance and crypto. CEO Jack Mallers, known for building Strike’s Bitcoin payment infrastructure, brings a “Bitcoin-first” ethos. Cantor Fitzgerald, chaired by Brandon Lutnick, son of U.S. Commerce Secretary Howard Lutnick, has managed Tether’s treasury portfolio since 2021.

Twenty One Capital’s $458.7 million Bitcoin purchase signals strong institutional confidence in the cryptocurrency’s long-term value. As the firm continues to build its treasury and develop Bitcoin-centric services, it could play a pivotal role in bridging traditional finance and crypto markets.

“Bitcoin is one of the only truly decentralized, immutable, and censorship-resistant asset, and its role as the foundation of a new financial system is inevitable,” Tether CEO Paolo Ardoino said in a statement. “We believe that Bitcoin is the answer, and Twenty One is how we bring that answer to public markets.”