Tether has purchased 4,812 bitcoins (BTC) for a total of $458.7 million for the Twenty One Capital fund, a joint project with Cantor Fitzgerald, SoftBank, and Bitfinex. The purchase was made at an average price of $95,319 per unit.
This is reported by Finway
The fund aims to become the leading public holder of bitcoins, surpassing Strategy. According to reports, the fund’s assets currently amount to 36,312 BTC, including 31,500 BTC held on Cantor’s balance sheet.
Plans for an IPO
The fund plans to go public through a merger with Cantor Equity Partners. According to the agreement, upon completion of the merger, the fund will receive the ticker XXI and become a public company. As stated by Twenty One CEO Jack Mallers, they are already in the process of securing approval for the deal, although the exact date for the IPO is still unknown.
Competition in the Bitcoin Market
According to BitcoinTreasuries, the Twenty One Capital fund will become the third-largest corporate holder of BTC, trailing only Strategy and MARA. While the deal is not yet finalized, the fund’s team hopes for a swift approval of the acquisition process from regulators.
The fund is backed by players such as Tether, Bitfinex, SoftBank, and Cantor Fitzgerald, with the latter providing $585 million in capital for the project. SoftBank, in turn, is investing $900 million, and the fund’s shares will be converted at $10 each.
In their statement to the U.S. Securities and Exchange Commission (SEC), fund representatives noted that their goal is to surpass Michael Saylor’s Strategy as the leader in the Bitcoin market. The key metric for the fund will be the amount of Bitcoin per share, rather than profit, as their strategy focuses on asset accumulation.
The fund aims to reach 42,000 BTC by the time of the IPO, with approximately 24,000 BTC provided by Tether, 10,500 BTC from SoftBank, and 7,000 BTC from Bitfinex.
“Tether reported $1 billion in profit and $5.6 billion in excess reserves.”