In a notable move underscoring the growing integration of traditional finance with the digital asset space, Tether and Bitfinex have recently transferred a substantial sum of Bitcoin, totaling 25,812 BTC, valued at approximately $2.7 billion. This significant transaction is reported to be part of the initial capital injection for Twenty One Capital, a new enterprise aiming to establish one of the world’s most extensive corporate Bitcoin treasuries.
Strategic Bitcoin Treasury Initiative
Paolo Ardoino, CEO of Tether and CTO of Bitfinex, confirmed the transfer, explaining via X (formerly Twitter) that these funds represent a “pre-funding” phase connected to Twenty One Capital’s launch and its ongoing equity raise. The Bitcoin has been moved to a publicly verifiable wallet associated with Twenty One Capital’s treasury, signifying strong backing from both Tether and Bitfinex. At the time of the transfer, Bitcoin was trading near $105,000, underscoring the substantial value committed.
Twenty One Capital is spearheaded by Jack Mallers, known for founding Strike and serving as CEO of Zap. Mallers introduced the company as an ambitious endeavor designed to bridge Bitcoin and conventional capital markets. Its strategic objective is to accumulate a vast Bitcoin holding, potentially reaching 42,000 BTC, which would position it among the leading corporate Bitcoin holders globally.
Funding and Path to Public Markets
The company’s strategy draws inspiration from successful models like MicroStrategy’s Bitcoin accumulation. Twenty One Capital plans to adopt a similar approach, leveraging corporate debt and equity. It has already secured $685 million in funding, with prominent investors including Tether, Bitfinex, and SoftBank. Mallers also disclosed plans to raise an additional $100 million through new convertible notes, with proceeds earmarked for further Bitcoin acquisitions.
A key aspect of Twenty One Capital’s future is its intention to go public through a merger with Cantor Equity Partners (CEP), a special purpose acquisition company (SPAC). Upon closing, the combined entity is set to trade on the Nasdaq under the ticker symbol “XXI.” The transaction values Twenty One Capital at $3.6 billion, based on an average Bitcoin price of $84,863.57 during its funding round. This announcement led to a notable surge in CEP’s shares, reflecting strong investor confidence in the Bitcoin treasury model. Beyond Tether and Bitfinex, the venture is also backed by Wall Street powerhouse SoftBank, lending considerable financial and technological credibility.
Commitment to Transparency
Transparency stands as a core principle for Twenty One Capital. Jack Mallers has publicly shared a Bitcoin wallet address holding 4,812 BTC, serving as initial proof of reserves. He has also committed to publishing additional wallet addresses, including those linked to Tether, Bitfinex, and a wallet managed by Tether on behalf of SoftBank. This dedication to public disclosure aims to foster investor confidence, especially given past high-profile incidents within the cryptocurrency sector, such as the FTX collapse, which have heightened the demand for proof-of-reserves. By openly disclosing its wallet addresses and reserve strategy, Twenty One Capital seeks to demonstrate that companies holding Bitcoin treasuries can operate with complete accountability and public trust, marking a significant evolution in financial transparency within the digital asset landscape.
Blockchain developer and writer, Daniel combines hands-on coding experience with accessible storytelling. He holds multiple blockchain certifications and authors technical explainers, protocol deep-dives, and developer tutorials to help readers navigate the intersection of code and finance.