May 14, 2025 — Tether, the leading stablecoin issuer, has deepened its exposure to Bitcoin by purchasing $458.7 million worth of the cryptocurrency for Twenty One Capital, a Bitcoin investment firm it backs. The acquisition involved 4,812.2 BTC at an average price of $95,319 per coin, according to a recent filing with the U.S. Securities and Exchange Commission (SEC) by Cantor Equity Partners.
This significant Bitcoin purchase was made on May 9 and transferred to an escrow wallet, as disclosed on May 13. The move increases Twenty One Capital’s total Bitcoin holdings to 36,312 BTC, placing it as the third-largest corporate Bitcoin holder globally, behind only Strategy (formerly MicroStrategy) and Bitcoin mining giant MARA Holdings.
Tether’s Strategic Bitcoin Play
Tether, also the majority stakeholder in Twenty One Capital alongside Bitfinex, is taking a bold stance on Bitcoin’s long-term potential. The move underscores Tether’s commitment to diversifying its reserves and supporting Bitcoin-native firms as the digital asset sector continues to mature.
The purchase also supports Twenty One Capital’s plans to merge with Cantor Equity Partners through a Special Purpose Acquisition Company (SPAC) deal. Once the merger is completed, the firm will trade under the ticker XXI.
Twenty One Capital’s Ambitions: Outperform Strategy
Led by Jack Mallers, the CEO of Strike, Twenty One Capital is positioning itself as a direct competitor to Michael Saylor’s Strategy. In an April SEC presentation, the company described itself as a “superior vehicle” for investors seeking capital-efficient Bitcoin exposure. Rather than focusing on earnings per share (EPS), the firm said it would measure success by “Bitcoin per share,” aligning performance metrics directly with Bitcoin accumulation.
Mallers confirmed on May 13 that the firm is currently undergoing the merger approval process, although he did not provide a definitive timeline for completion.
Key Investors and Funding Structure
The SPAC merger is being sponsored by Cantor Fitzgerald, which is not only advising but also helping raise funds for the initiative. Cantor has reportedly secured $585 million to support Twenty One’s Bitcoin acquisitions.
In addition to Tether, Twenty One Capital is also backed by SoftBank, which has invested $900 million, and Bitfinex, whose 7,000 BTC stake will be converted into equity at $10 per share. The company’s target is to reach 42,000 BTC by launch, with the Bitcoin pool expected to be distributed as follows:
- Tether: 23,950 BTC
- SoftBank: 10,500 BTC
- Bitfinex: 7,000 BTC
This structured backing highlights the firm’s confidence in Bitcoin as a long-term asset, supported by powerful players in both crypto and traditional finance.
Market Impact and Stock Movements
Following news of the Bitcoin acquisition and increased investor interest, Cantor Equity Partners’ stock experienced a dramatic surge. On May 2, shares jumped from $10.65 to $59.73, although the price later corrected to $29.84. However, after-hours trading saw another 5.2% increase, driven by optimism surrounding the merger and Tether’s involvement.
This volatility highlights growing investor enthusiasm for Bitcoin-centric corporate strategies, especially when major players like Tether are actively participating.
Tether’s Continued Expansion in the Bitcoin Ecosystem
Tether has been making steady moves to support Bitcoin-native platforms and expandq its influence beyond stablecoins. Its strategic investment in Twenty One Capital represents a broader effort to integrate Bitcoin into institutional portfolios and infrastructure.
Unlike many firms that hedge their crypto exposure, Tether’s direct support for a Bitcoin-native SPAC reflects a firm belief in Bitcoin’s long-term value proposition. With this move, Tether also cements its role not just as a stablecoin issuer, but as a key architect of the institutional Bitcoin landscape.
Conclusion: Tether’s Bold Bitcoin Bet Redefines Corporate Strategy
Tether’s $459 million Bitcoin purchase signals more than just market6 confidence—it represents a paradigm shift in how crypto-native firms operate and scale. By backing Twenty One Capital, Tether is building a corporate Bitcoin giant that competes directly with traditional firms like Strategy, but with native crypto advantages.
As the SPAC merger progresses, and XXI enters the public markets, all eyes will be on how effectively Tether’s strategic play pans out. For now, it’s clear that Tether is not just following the Bitcoin wave—it’s helping shape it.
Also Read: Bluefin Airdrop Guide: Everything You Need to Know