Tether Designates 10,500 Bitcoins for SoftBank's Investment in Twenty One Capital
In a recent tweet, Tether CEO Paolo Ardoino spilled the beans about the company's slick move to support SoftBank's investment into Bitcoin-focused firm Twenty One Capital. Ardoino shared a block from Mempool that shows 10,500 BTC worth a whopping $1.1 billion was sent to a known address, with the intent of pre-funding SoftBank's investment in XXI.
The stablecoin issuer aren't stopping there, as they've also moved another 917 BTC to another address linked to the pre-funding for Twenty One Capital. This allocation, Ardoino clarified, is part of an option for converting investors into XXI equity.
In an unexpected twist, just a day prior to the SoftBank investment, Tether and Bitfinex jointly invested a massive 25,812 BTC (worth around $2.7 billion) into Twenty One Capital. This joint investment was sent to a new address linked to the firm.
Twenty One Capital is a Bitcoin treasury launched by Cantor Fitzgerald's Chairman Brandon Lutnick and owned by iFinex and Tether. It will be led by Strike CEO Jack Mallers and aims to launch with over 42,000 BTC in its Bitcoin treasury. The firm will be listed on Nasdaq through a SPAC merger with Cantor Equity Partners, under the ticker XXI.
In the broader scheme of things, these transactions signify a growing institutional interest in the cryptocurrency sector, particularly Bitcoin. They solidify Bitcoin's role as a foundational asset in digital finance and contribute to increased market confidence in its potential as a store of value and hedge against market volatility. These moves could also influence spot price stability and derivative hedging strategies. However, traders remain cautious about potential selling pressure if the recipient addresses begin to liquidate their BTC holdings.
- Tether, the stablecoin issuer, apart from pre-funding SoftBank's investment into Twenty One Capital, also invested a substantial 25,812 BTC into the Bitcoin treasury of Twenty One Capital, in a joint venture with Bitfinex.
- The 25,812 BTC investment by Tether and Bitfinex was sent to a new address linked to Twenty One Capital, indicating a strategic move by the companies.
- Twenty One Capital, a Bitcoin treasury launched by Cantor Fitzgerald's Chairman, Brandon Lutnick, and owned by iFinex and Tether, aims to launch with over 42,000 BTC in its Bitcoin treasury.
- The increasing investments in Bitcoin by institutional players such as Tether and SoftBank, and the establishment of Bitcoin treasuries like Twenty One Capital, demonstrate a growing acceptance of cryptocurrency in traditional finance and technology circles.
