Tether Acquires Bitcoin Worth $458.7M for Cantor Merger Transaction
Tether has acquired a substantial amount of Bitcoin tokens as part of a strategic role in a business merger involving Cantor Equity Partners and Twenty One Capital. The purchase, disclosed under a Business Combination Agreement dated April 22, 2025, involved 4,812 Bitcoin for over $458.7 million at an average price of $95,319.83 per Bitcoin. According to regulatory documents filed Tuesday, the acquisition is tied to an effort to support the financial structure of an upcoming public listing via SPAC.
Digital Asset Transfer Anchors Initial PIPE Investment
Shortly after the creation of Twenty One Capital, Tether moved the Bitcoin tokens to a wallet it controls. This allocation, designated in the filing as the “Initial PIPE Bitcoin,” forms part of a private investment in public equity structure. The company will transfer it to the merged public company at the same $458.7 million valuation once the transaction closes. The document links the funds used by Tether to subscription proceeds raised through a convertible note offering.
Through this transaction, Tether joins other backers contributing capital in Bitcoin form. Meanwhile, Cantor Equity Partners has custody of 31,500 Bitcoin on behalf of Twenty One Capital. Combined with Tether’s contribution, the firm’s current Bitcoin reserves reach 36,312 BTC. This move illustrates the company’s focus on structuring its balance sheet around digital assets during the merger process.
Crypto Entities Commit to Funding Structure
Earlier this year, Cantor Equity Partners raised $200 million to initiate the creation of Twenty One Capital. As part of a broader funding arrangement, Tether committed $1.5 billion in digital assets to the firm. Additionally, SoftBank allocated $900 million, and Bitfinex added $600 million in Bitcoin. These contributions will bring the total Bitcoin support for the newly formed entity to $3 billion.
The funding pool is part of a coordinated effort to capitalize Twenty One Capital, which will operate under the ticker XXI following the merger’s completion. While the approval process is currently in progress, no official timeline for the finalization has been announced. The firm’s capital structure is being designed with Bitcoin at its core, underscoring a preference for digital asset-backed financial mechanisms.
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