Twenty One Capital Acquires $458.7M in Bitcoin, Leading the Market Before Going Public

Twenty One Capital acquired 4,812 Bitcoins (BTC) on May 9 for around $458.7 million, as detailed in an 8-K Form submitted to the US Securities and Exchange Commission (SEC).

The purchase was made at an average cost of $95,319.83 per BTC and is linked to a business merger agreement with Cantor Equity Partners, a SPAC sponsored by Cantor Fitzgerald.

The Bitcoin was initially obtained by Tether and held in a specific wallet while awaiting the conclusion of PIPE financing. Tether will transfer the Bitcoin to Twenty One upon finalization of the deals as per the agreement terms.

The structure of the PIPE financing consists of $385 million in convertible senior secured notes and $200 million in common equity.

The proceeds from these offerings are primarily allocated for further Bitcoin acquisitions.

Additionally, the company has the option to raise an additional $100 million in convertible notes within a month from the original transaction date.

Jeff Park, head of alpha strategies at Bitwise, commented on the timing and magnitude of the acquisition, noting that Twenty One Capital “essentially scooped up half a yard of BTC within two weeks of its announcement.”

With this purchase, Twenty One Capital becomes the 17th largest corporate Bitcoin holder worldwide and ranks fifth among private entities based on metrics from Bitcoin Treasuries.

The organization anticipates possessing over 42,000 BTC at launch, placing it among the top holders of corporate Bitcoin reserves.

Twenty One was created through a merger with Cantor Equity Partners and has backing from Tether, Bitfinex, and SoftBank Group. The company aims to function as a Bitcoin-focused public entity, emphasizing Bitcoin ownership per share rather than conventional equity measures.

Its business strategy involves the creation of Bitcoin-centric financial products, capital market instruments, and corporate infrastructure that align with the principles of Bitcoin’s monetary system.

Once the transaction is completed, Twenty One will trade under the “XXI” ticker, while shares of Cantor Equity Partners will continue to be available on Nasdaq under “CEP.”