A major stablecoin issuer has just put nearly half a billion dollars into Bitcoin. According to a filing with the US Securities and Exchange Commission on May 13, Tether bought 4,812 BTC at an average price of $95,319 each on May 9. That adds nearly $460 million of Bitcoin to a special escrow wallet tied to Twenty One Capital, a firm backed by Tether that is working toward a SPAC merger with Cantor Equity Partners.
Tether’s Bold Bitcoin Move
Based on reports, Tether isn’t just minting tokens anymore. It’s taking on direct price risk. By placing almost $460 million into Twenty One’s Bitcoin stash, the stablecoin issuer steps into the realm of corporate holders. This purchase boosts Twenty One’s total to 36,312 BTC. Cantor Equity Partners holds 31,500 BTC on Twenty One’s behalf, and the rest came straight from Tether’s reserve play.
Volatile Share Price Patterns
Twenty One’s future shares will trade under the ticker XXI once its SPAC deal closes. The CEO, Jack Mallers, says approvals are in motion, though he stopped short of naming a date. Investors have already seen wild swings: XXI shares jumped from $10.65 to $59.73 on May 2, then slid back to $29.84, and climbed another 5.2% in after-hours trading following this latest buy.
Big Backers Onboard
Tether isn’t alone in funding Twenty One. SoftBank has pledged $900 million. Bitfinex, another crypto firm, will convert about 7,000 BTC into equity at $10 per share. Cantor Fitzgerald is leading the SPAC, lining up $585 million to back more Bitcoin buys. Those names lend weight, but each partner brings its own risks, from market moves to shifting strategies.
Climbing Toward The Top
With 36,312 BTC in its treasury, Twenty One Capital will rank as the third‑largest corporate Bitcoin holder. Strategy (formerly MicroStrategy) sits at the top with 568,840 BTC. BMO-backed miner Marathon Digital holds 48,237 BTC. Twenty One is now chasing that third spot, hoping investors will see it as a go‑to vehicle for pure Bitcoin exposure.
Bitcoin Per Share Focus
Twenty One’s pitch is simple: grow Bitcoin per share. According to its SEC presentation, profit won’t drive its strategy. Instead, every dollar raised will aim to buy more BTC. That contrasts with most public companies, which measure success by earnings per share. Here, a rise in BTC holdings is the goal.
What’s Next For Investors
The SPAC route still has hurdles. Reports disclose that SEC reviews can drag on, and investors will watch for any changes in capital‑raise terms. If Bitcoin surges, Twenty One could soar. If it dips, there’s no operating profit to soften the blow. For those who want straight Bitcoin bets, this may look attractive. But anyone craving steady returns from fees or services might look elsewhere.
In the coming weeks, market watchers will track both the SEC’s green light and how Twenty One manages its expanding Bitcoin stash. The answer will shape whether stablecoin issuers become big new players in the Bitcoin game.
Featured image from Gemini Imagen, chart from TradingView
