Tether has just acquired nearly half a billion dollars in Bitcoin as part of a major strategic operation. This transaction is preparing the launch of Twenty One, a new Bitcoin cash company that is about to enter the Nasdaq via a spac merger. A maneuver that could redefine the standards of the institutional management of cryptos.
In short
- Tether acquired 4,812.22 Bitcoins for $ 458.7 million, intended for Twenty One.
- The company will aim at a cash flow of 42,000 BTC ($ 4.4 billion) after its quotation at Nasdaq.
- Jack Mallers, CEO of Strike, will direct this company born from an alliance between Tether, Bitfinex, Cantor Fitzgerald and SoftBank.
- Twenty One will offer innovative financial services, including Bitcoins loan.
Tether buys $ 459 million in Bitcoin to finance a cash company
Tuesday, May 13, a document filed with the SEC revealed the extent of the operation. Tether acquired 4,812.22 Bitcoins at a unit price of $ 95,319.83, for a total investment of $ 458.7 million. This acquisition constitutes the cornerstone of the launch of Twenty One.
These bitcoins will be transferred to Twenty One after the finalization of its spac merger with Cantor Equity Partners. This operation will allow the company to access the NASDAQ under the XXI symbol. Bitcoins will be sold at the initial purchase price, without added value, demonstrating the strategic nature of the investment.
Twenty One results from a collaboration between giants in the sector: Tether, Bitfinex, Cantor Fitzgerald and SoftBank Group. The company aims to transform the institutional management of digital assets, with innovative services such as Bitcoins loan. Tether and Bitfinex will hold a majority participation, SoftBank retaining a minority part.
The expected initial treasure of 42,000 BTC – approximately $ 4.4 billion during the current course – will immediately position Twenty One among the main institutional Bitcoin holders. Jack Mallers, currently CEO of Strike, will assume the management of this new entity.
The operation benefits from a favorable context. Bitcoin maintains its solidity around $ 104,000, just 4 % of its historic record of 108,786 dollars. Improving Sino-American trade relations has contributed to the rebound in the Crypto markets this week.
An innovative economic model to attract institutional
Twenty One will develop a complete ecosystem around Bitcoin. Beyond storage, the company will offer BTC loan services and other sophisticated financial products for institutional investors.
To finance its expansion, the company plans to raise additional $ 600 million: 385 million via convertible bonds and 200 million in investment capital. These funds will mainly be used to increase bitcoin reserves and develop operational activities.
This strategy is part of an increasing tendency of institutional accumulation. Strategy holds nearly $ 60 billion in Bitcoin, while Marathon Digital, Semler Scientific and Metaplanet have adopted similar approaches. The entry of Twenty One amplifies this movement, confirming the evolution of Bitcoin to a recognized reserve asset.
Tether's investment in Twenty One marks a crucial step in the institutionalization of Bitcoin. While the queen of cryptos becomes a central element of business cash strategies, the border between traditional finance and digital markets continues to fade.
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