Cantor-Backed Twenty One Capital Buys $458.7M Bitcoin in First Treasury Move

Twenty One Capital, the Bitcoin investment firm backed by financial giant Cantor Fitzgerald, stablecoin issuer Tether, and technology conglomerate Softbank, has announced its first major Bitcoin acquisition, purchasing 4,812 BTC worth $458.7 million.

The purchase, disclosed in a securities filing on Tuesday, was executed shortly after Twenty One Capital's incorporation. According to the filing, the Bitcoin was acquired as part of an agreement tied to the gross proceeds from subscription agreements related to a convertible notes offering by the publicly traded entity, which trades under the ticker CEP.

This initial Bitcoin allocation is referred to as "Initial PIPE Bitcoin" for the private investment in public equity (PIPE) transaction and was initially transferred to a wallet controlled by Tether. Upon the closing of the business combination, Tether will sell the Bitcoin to Twenty One Capital for the aforementioned $458.7 million.

Twenty One Capital was formed through a SPAC merger with Cantor Equity Partners and launched with a substantial $3.6 billion worth of Bitcoin already on its balance sheet, positioning it as the third-largest public holder of the cryptocurrency. The company is led by Jack Mallers, the founder of payment network Strike, and is majority-owned by Tether and its sister company, the crypto exchange Bitfinex, with SoftBank holding a minority stake.

As previously reported, Twenty One Capital's strategy mirrors that of companies like MicroStrategy, focusing on Bitcoin as a primary treasury asset. This initial $458.7 million purchase signals the start of what the company has indicated will be ongoing Bitcoin acquisitions, with Tether saying the company plans to acquire "an infinite amount of Bitcoin" and Twenty One saying that "this is just the tip of the iceberg."

According to its website, Twenty One Capital currently holds 31,500 BTC.