Twenty One Capital Makes Major Bitcoin Purchase
Twenty One Capital recently made a significant move in the cryptocurrency market by purchasing 4,812 Bitcoins (BTC) on May 9 for approximately $458.7 million. This acquisition was disclosed in an 8-K Form filed with the US Securities and Exchange Commission (SEC).
The purchase, which was made at an average price of $95,319.83 per BTC, was part of a business combination agreement between Twenty One and Cantor Equity Partners, a special-purpose acquisition company backed by Cantor Fitzgerald.
PIPE Financing Structure
The acquired Bitcoin was initially held by Tether in a designated wallet until the close of the PIPE (private investment in public equity) financing. Upon completion of the proposed transactions outlined in the agreement, Tether will transfer the Bitcoin to Twenty One.
The PIPE financing structure consists of $385 million in convertible senior secured notes and $200 million in common equity. The net proceeds from these offerings will primarily be used for additional Bitcoin purchases. Additionally, there is an option to raise an additional $100 million in convertible notes within 30 days of the initial transaction.
Industry Expert Insights
Jeff Park, head of alpha strategies at Bitwise, commented on the acquisition, noting that Twenty One Capital made a significant purchase within a short timeframe. He highlighted the scale and timing of the transaction, emphasizing the impact it had on the market.
Bitcoin Treasury Strategy and Launch
With this recent acquisition, Twenty One Capital has now become the 17th-largest corporate Bitcoin holder globally and ranks fifth among private companies according to data from Bitcoin Treasuries. The company anticipates holding over 42,000 BTC at launch, positioning it as one of the top corporate Bitcoin reserves globally.
Twenty One Capital was established as part of a business combination with Cantor Equity Partners and is supported by Tether, Bitfinex, and SoftBank Group. The company is structured to operate as a Bitcoin-native public entity, prioritizing maximizing Bitcoin ownership per share over traditional equity metrics.
The company’s business model includes developing Bitcoin-native financial products, capital market tools, and corporate infrastructure aligned with Bitcoin’s unique monetary properties. Following the completion of the transaction, Twenty One will trade under the ticker symbol “XXI,” while Cantor Equity Partners shares will continue to trade on Nasdaq as “CEP.”
In conclusion, Twenty One Capital’s recent Bitcoin purchase highlights the growing interest in cryptocurrency among institutional investors and underscores the company’s commitment to building a robust Bitcoin-centric financial ecosystem.