Tether Invests $459M in Bitcoin to Establish New Treasury Company
Tether, recognized for operating the USDT stablecoin, has again made a significant investment in Bitcoin. This time, they’ve acquired $459 million in Bitcoin to launch a new initiative named “Twenty One,” a BTC treasury firm with intentions to enter the public market. This move is part of their strategy in a year filled with such maneuvers, as Tether accumulates BTC to base level its shift towards institutional clientele.
And no, this isn’t an obscure test run. The action involves major companies such as Bitfinex and a partnership with Cantor Fitzgerald. Additionally, they’ve appointed Jack Mallers as CEO. Yes, that Jack Mallers, the creator of Strike.
What Exactly Did Tether Acquire?
As per a recent filing with the SEC, Tether purchased 4,812.22 Bitcoin at an average cost of $95,319.83 for each crypto token. Once the transactions are finalized, those coins will be transferred to Twenty One, the emerging firm formed through a collaboration with Cantor’s special purpose acquisition company, Cantor Equity Partners.
Twenty One just acquired 4,812 $BTC ($458.7M) via $Tether
Average price: $95.3K.
CT won’t care. But you probably should.
This isn’t just “someone bought the dip.”
This is the public emergence of Twenty One — the first corporation not holding Bitcoin,
but built entirely around it.… pic.twitter.com/k8JCHzHcN5— abraksas.eth (@abraksas_eth) May 13, 2025
This is just the initial step. The objective is to debut Twenty One with over 42,000 Bitcoin in reserves, estimated to be around $4.4 billion at current trading market values. This would position it among the largest corporate BTC treasuries globally, alongside entities like MicroStrategy.
What’s the Strategy?
Twenty One seeks to provide traditional investors with BTC exposure via the stock markets, eliminating the hurdles of setting up wallets or managing private keys. Envision it as a Bitcoin-centric financial entity handling everything from reserves to the lending of BTC and providing crypto-specific financial services, all structured within a public-market framework.
JUST IN: Tether bought 4,812 Bitcoin for $458.7m (avg $95,319.83) in preparation of launching the Twenty One BTC treasury. pic.twitter.com/qtYOS6E5c0
— NLNico (@btcNLNico) May 13, 2025
The firm aims to gather roughly $585 million through this endeavor. This includes $385 million from convertible senior notes and an additional $200 million from private equity contributions. A significant portion will be directed towards acquiring more Bitcoin and facilitating the launch of the new company.
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Why is Tether Investing in Bitcoin Now?
On a timing note, this investment comes at a moment when BTC is regaining attention, trading beyond $104,000 and approaching new pinnacle values. Numerous institutions have started to take an interest in Bitcoin this year, particularly following the approval of spot BTC ETFs in the U.S.
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Tether’s action indicates that stablecoin providers are venturing into asset diversification, potentially profiting from Bitcoin’s increasing significance as a digital reserve asset.
Any Downsides?
Well, skeptics have consistently questioned Tether’s level of transparency and its affiliations with Bitfinex. While this new initiative is eye-catching, it also intensifies the need for transparent operations from both regulatory and financial reporting perspectives. Launching a Bitcoin treasury firm publicly will undoubtedly attract greater scrutiny.
In Conclusion
Tether’s $459 million Bitcoin acquisition is not merely a noteworthy headline; it marks the inception of a larger venture. Through Twenty One, they’re wagering that conventional investors desire access to Bitcoin without engaging with exchanges or hardware wallets.
Whether this evolves into the next significant institutional gateway or simply another ambitious crypto experiment, one thing is evident: Tether is reaffirming its commitment to Bitcoin and doing so with a bold presence.
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Key Takeaways
- Tether has invested $459 million into Bitcoin to launch Twenty One, a new Bitcoin treasury firm set to go public.
- The organization acquired 4,812 Bitcoin at an average price of $95,319 and plans to transition over 42,000 Bitcoin, valued around $4.4 billion, to its new initiative.
- Twenty One will provide traditional investors with public-market access to BTC, while also offering systems like BTC lending and reserve management.
- The venture is being established through a merger with Cantor Fitzgerald’s SPAC and includes Strike CEO Jack Mallers as its new leader.
- While this move underscores Tether’s stronger allegiance to Bitcoin, it also brings forth questions regarding transparency and regulatory compliance, especially given its scale and aspirations for a public listing.
The post Tether Drops $459M on Bitcoin to Launch New Treasury Firm appeared first on 99Bitcoins.
