3 weeks ago
Stablecoin issuer Tether bought $458.7 cardinal worthy of Bitcoin for Twenty One Capital, a Bitcoin concern steadfast it backed that’s awaiting the completion of a Special Purpose Acquisition Company (SPAC) merger with Cantor Equity Partners.
Tether snapped up 4,812.2 Bitcoin (BTC) astatine $95,319 each and transferred it to an escrow wallet connected May 9, Cantor Equity Partners disclosed successful a May 13 filing with the US Securities and Exchange Commission.
It brings Twenty One’s full Bitcoin holdings to 36,312 BTC, arsenic Cantor Equity Partners holds 31,500 BTC connected behalf of the firm, which volition commercialized nether the ticker XXI erstwhile the SPAC merger is complete.
Twenty One’s CEO, Jack Mallers, said connected May 13 that they’re already successful the support process of the merger, but didn’t springiness an nonstop estimation connected erstwhile the transaction would beryllium complete.
Twenty One is already the 3rd largest firm Bitcoin holder, trailing lone Strategy and Bitcoin mining steadfast MARA Holdings astatine 568,840 Bitcoin and 48,237 Bitcoin, respectively, BitcoinTreasuries.net data shows.
Tether is simply a majority stakeholder successful Twenty One alongside crypto speech Bitfinex. The Wall Street heavyweight Cantor Fitzgerald is sponsoring the merger, providing fiscal advisory services and securing $585 cardinal successful backing to enactment Twenty One’s Bitcoin investments.
Japanese concern holding steadfast SoftBank besides invested $900 cardinal into Twenty One, which is led by Strike CEO Jack Mallers.
Strategy whitethorn person a morganatic competitor
Twenty One said successful an April presumption to the SEC that is looking to supplant Michael Saylor’s Strategy, formerly MicroStrategy, to go the “superior vehicle” for investors seeking “capital-efficient Bitcoin exposure.”
The institution is among galore Bitcoin buying firms, but promises to beryllium a “pure play” for investors seeking Bitcoin vulnerability with Bitcoin-native operations and much flexibility for strategical superior raises.
Twenty One Capital’s examination of its Bitcoin treasury program to that of Strategy’s. Source: SEC
Twenty One said its cardinal occurrence metric volition beryllium Bitcoin per share and not the accepted net per stock metric, arsenic it volition prioritize buying up Bitcoin implicit making a profit.
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Twenty One is aiming to scope 42,000 Bitcoin by the clip it launches. Earlier filings showed that 23,950 Bitcoin is expected to travel from Tether, 10,500 Bitcoin from Softbank and astir 7,000 Bitcoin from Bitfinex, which volition beryllium converted into equity astatine $10 per share.
Cantor Equity Partners’ (CEP) stock terms soared from $10.65 to $59.73 connected May 2 but has since fallen backmost to $29.84, Google Finance data shows. CEP roseate different 5.2% successful after-hours pursuing the caller purchase.
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