Investment firm Twenty One Capital, backed by Tether, expands its portfolio with a major bitcoin purchase.
Twenty One Capital, a bitcoin investment company supported by financial players such as Cantor Fitzgerald, Tether, and SoftBank, has purchased bitcoin, adding 4,812 BTC to its portfolio at an average price of $95,320 per BTC, for a total value of $458.7 million. The firm, which operates under the ticker CEP, expects to hold over 42,000 BTC at launch and already has a series of future purchases planned.
The transaction was executed directly by Tether shortly after the incorporation of Twenty One Capital, as disclosed in an official filing submitted to the SEC on May 13. The operation is part of a broader agreement involving the use of gross proceeds from subscription agreements linked to a convertible bond offering issued by the publicly listed company.
The initial allocation, referred to in the documents as “Initial PIPE Bitcoin” (Private Investment in Public Equity), was transferred to a wallet controlled by Tether. Blockchain data shows that the escrow wallet, disclosed in the filing, received the funds from a Bitfinex hot wallet on May 9.
Upon completion of the business combination, Tether will sell the bitcoin to the publicly listed company for the agreed amount of $458.7 million.
The PIPE financing structure includes $385 million in convertible senior secured notes and $200 million in common equity. The net proceeds from these offerings will be designated primarily for additional bitcoin purchases. The company also retains an option to raise up to an additional $100 million in convertible notes within 30 days of the initial transaction date.
Twenty One Capital was formed through a SPAC merger with Cantor Equity Partners and debuted with $3.6 billion in bitcoin holdings, positioning itself as the third largest corporate bitcoin holder among publicly traded companies.
The firm is led by Jack Mallers, founder of Strike, and is primarily controlled by Tether and its sister company, the Bitfinex exchange, while SoftBank holds a minority stake.
Twenty One Capital joins dozens of other firms that have adopted a bitcoin-focused investment strategy, following the model pioneered by Michael Saylor.
