Tether Invests Nearly Half a Billion Dollars in Bitcoin for Twenty One Capital
Date: 2025-05-15 Author: Gabriel Deangelo Categories: BUSINESS
Tether acquired 4,812 bitcoins worth $458.7 million as part of a joint venture with Cantor Fitzgerald, SoftBank, and Bitfinex — an investment fund called Twenty One Capital. The deal was completed at an average price of $95,319 per coin, and all assets were transferred to a special escrow wallet created for the fund.
The fund intends to go public through a merger with Cantor Equity Partners. Once the merger is complete, the company will trade under the ticker XXI. Information about the deal was filed with the U.S. Securities and Exchange Commission on May 13, 2025.
The total volume of bitcoins owned by the fund currently amounts to 36,312 BTC, of which 31,500 BTC are on the balance sheet of Cantor. According to Twenty One Capital CEO Jack Mallers, the approval process for the deal has already begun, but the exact date of the listing has not yet been announced.
If all plans are implemented, Twenty One will become the third largest corporate holder of bitcoins in the world, second only to Strategy and MARA, according to the Bitcoin Treasuries resource. Although the merger has not yet been completed, the fund's management expects that regulators will not delay the approval.
The project has received significant financial support. Cantor Fitzgerald invested $585 million in the fund, SoftBank provided investments in the amount of $900 million. The fund's shares will be valued at $10 per share as part of the listing. The main goal of the fund is not to make a profit, but to accumulate bitcoins - this is the key metric by which the fund plans to compete with Strategy.
In a presentation to the SEC, the fund representatives explicitly indicated their desire to surpass Strategy by making Twenty One the main public bitcoin company. By the time of the IPO, the fund plans to increase its reserves to 42,000 BTC. Of this amount, according to current plans, Tether will provide 24,000 BTC, SoftBank - 10,500 BTC, and Bitfinex will add about 7,000 BTC.
Earlier, Tether reportedly recorded a profit of $1 billion and has excess reserves of $5.6 billion.
