- Twenty One Capital acquires 4,812 BTC for $458.7 million, signaling strong confidence in Bitcoin’s future.
- The purchase coincides with Bitcoin’s price approaching its all-time high, fueling speculation of a potential breakout.
Tether-backed Bitcoin investment firm, Twenty One Capital, has recently acquired 4,812 BTC, valued at $458.7 million. This substantial investment, executed as part of a private investment in public equity (PIPE) deal linked to a Special Purpose Acquisition Company (SPAC) merger, has positioned the company as the third-largest corporate holder of Bitcoin, behind MicroStrategy and MARA Holdings.
Strategic Bitcoin Acquisition
The acquisition, detailed in a U.S. Securities and Exchange Commission (SEC) filing dated May 13, is part of Twenty One Capital’s broader strategy to become a leading vehicle for capital-efficient Bitcoin exposure. Stablecoin issuer Tether initially transferred the Bitcoin to an escrow wallet on May 9, and subsequently moved to a wallet controlled by Twenty One Capital.
The merger itself is being facilitated through Cantor Equity Partners, a Cayman Islands-based SPAC affiliated with Wall Street firm Cantor Fitzgerald. Once complete, Twenty One Capital will be listed under the ticker “XXI” on public markets.
This latest purchase brings Twenty One Capital’s total holdings to 36,312 BTC. According to SEC filings, Cantor Equity Partners holds 31,500 BTC on behalf of the company. Jack Mallers, founder of the BTC payments app Strike, leads Twenty One Capital, mirroring MicroStrategy’s Bitcoin-focused strategy. The company aims to reach 42,000 BTC in total holdings upon its public launch, with contributions expected from Tether, SoftBank, and Bitfinex.
Shares of Cantor Equity Partners (CEP) experienced significant volatility following the announcement of the Bitcoin purchase. The stock price surged over 460% from $10.65 to $59.73 on May 2 before settling at $29.84. Following the recent filing, the stock saw an additional 5.2% gain in after-hours trading.
The timing of this acquisition coincides with a strong upward trend in Bitcoin‘s price, which has reached $103,555, up 0.7%, nearing its previous all-time high. This has led market analysts to closely monitor the cryptocurrency for a potential breakout.
Market analyst Michaël van de Poppe noted on X that recent Consumer Price Index (CPI) data indicated lower-than-expected inflation. He suggests this environment could be favourable for Bitcoin’s next move to a new all-time high. ”Pretty good read today from the CPI. Lower than expected. Inflation is calming down and that would ease investors a little bit, this would also signal that the FED can lower interest rates. The cocktail for #Bitcoin to go ballistic is getting there,” he stated.
Another analyst, ColinTCrypto, highlighted the ongoing correlation between Bitcoin and the Global M2 money supply. He pointed out similarities to patterns observed earlier in the year when Bitcoin rose from $76,000 to $105,000 between April 8 and mid-May, approaching the all-time high at $109,000.
ColinTCrypto added that Bitcoin is “still right on track with Global M2,” and suggested a breakout above $120,000 could occur by the end of May, potentially setting a new all-time high.
Japanese firm Metaplanet has also increased its exposure by adding 1,271 BTC for $126.7 million on Monday. The announcement comes in days after the company announced its $25 million worth of bond issuance at 0% to further its BTC acquisition plans. As a result of its recent purchase, the Japanese firm has surpassed El Salvador in total BTC holdings.