Global Stablecoin Issuer Tether Directly Invests in Bitcoin Company Twenty One
Global stablecoin issuer Tether has directly invested in the US Bitcoin company Twenty One using Bitcoin, acquiring 4,812 Bitcoins. Upon completion of the merger, the initial assets will exceed 42,000 Bitcoins (BTC), making it the third-largest Bitcoin holder among publicly listed companies.
Twenty One Has Acquired 4,812 Bitcoins
According to SEC filings, Tether has purchased $468.7 million worth of Bitcoins in accordance with the terms of the corporate merger agreement, placing the Bitcoins into a digital wallet held or operated by Tether. Based on the provided wallet address, this purchase consisted of 4,812.22 Bitcoins, with an average cost of $97,402 per Bitcoin.
The funding for this purchase comes from a $500 million private investment in public equity (PIPE) and convertible bond offering.
Who Are the Initial Investors of CEP?
The US Bitcoin company Twenty One will go public through a merger with Cantor Fitzgerald’s special purpose acquisition company (SPAC) Cantor Equity Partners (stock code CEP), led by CEO Jack Mallers, founder of Strike. The shareholder lineup includes Tether, SoftBank Group of Japan, exchange Bitfinex, and Cantor Fitzgerald.
Tether and Bitfinex will directly transfer 31,500 Bitcoins in exchange for equity in the new company. SoftBank Group will purchase Bitcoins through Tether with cash, becoming the second-largest shareholder. After the transaction is completed, Tether’s voting power will reach 51.7%, granting it absolute control.
CEP Will Become a Comprehensive Bitcoin Company
Twenty One emphasizes that it is not just a Bitcoin reserve strategy company; it also plans to promote Bitcoin adoption and culture by producing Bitcoin-specific content and media, becoming a cultural advocate for the Bitcoin community.
Additionally, Twenty One plans to launch various “Bitcoin-native financial products,” such as Bitcoin lending and Bitcoin capital market products.
SoftBank’s Investment in Stargate Faces Funding Issues: Is There a Change for Twenty One?
SoftBank Group, the second-largest shareholder of Twenty One, has recently faced reports of funding issues in its Stargate investment project in collaboration with OpenAI. The project was originally expected to invest $500 billion over four years in AI infrastructure. However, due to the impact of US tariff policies, lenders and investors have adopted a cautious stance on high-risk investments, causing financing progress to stall.
It has not yet been confirmed whether SoftBank’s funding for Twenty One has been secured; however, compared to Stargate’s $500 billion, SoftBank’s investment in this case should be relatively minor. According to previous investment documents, SoftBank will invest cash equivalent to 10,500 Bitcoins, which is estimated to be around $1 billion.
CEP Once Surged to $59 Before Falling Back
Before the transaction is completed, Twenty One has listed under the ticker “CEP” on the Nasdaq stock exchange. After the merger is completed, it will change its trading code to “XXI.” The price of CEP surged to $59 on May 1 but has recently fallen back to $29, possibly as investors remain cautious about the progress of the merger.
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and prices can be highly volatile. You may lose all your principal. Please assess the risks carefully.