- Tether acquires 4,812 BTC for $458.7M, launching treasury arm Twenty One for institutional crypto asset management.
- Bitcoin rises above $105K after Tether and BlackRock purchases; institutional demand fuels market rally despite midday corrections.
- Twenty One manages Tether’s BTC in a secure blockchain-linked wallet, with $52M held back to mitigate potential risks.
Tether has acquired 4,812.220927 BTC for $458.7 million, marking a significant step in institutional Bitcoin adoption. The purchase aligns with the launch of Twenty One, a dedicated Bitcoin treasury subsidiary focused on digital asset management.
Tether Initiates Treasury Play via Bitcoin Holdings
According to a post by Simply Bitcoin, the stablecoin issuer completed the acquisition on May 13 at an average price of $95,319.83 per Bitcoin. It ranks among Tether’s largest BTC purchases, reflecting a deeper commitment to on-chain reserves.
The deal is part of a Business Combination Agreement with Cantor Equity Partners, Pubco, and several Cayman and Delaware entities. These parties are collaborating under a unified strategy to integrate blockchain finance into corporate structures.
Twenty One to Manage Custody and Execution
The launch of Twenty One expands Tether’s operational framework into crypto asset treasury management. In the Regulatory Filing, the company will manage custody via a PIPE Digital Wallet and transfer assets to Pubco upon deal closure.
Twenty One will oversee Bitcoin held in the wallet, supporting corporate finance objectives. The funding includes Convertible Notes PIPE and Equity PIPE components, with $458.7 million in gross proceeds directed toward the acquisition. Asset custody includes a verifiable blockchain-linked wallet accessible to stakeholders. A $52 million holdback is built into the agreement to address potential execution risks.
Regulatory Disclosures Emphasize Institutional Scale
The Form 8-K filing with the U.S. SEC outlines the terms of the acquisition and unregistered securities issued in the PIPE Investment. Class A shares and convertible notes remain subject to exemption conditions under the Securities Act.
Additional filings, such as Form S-4 and a Proxy Statement/Prospectus, will offer further details. These will address shareholder terms, Bitcoin-related risks, and closing procedures pending regulatory approvals.
Market Reacts as Institutional Buys Drive BTC Spike
Simultaneously, institutional interest fueled by Tether’s move and BlackRock’s BTC acquisition triggered price action. Coinvo reported that BlackRock bought 686 BTC worth $69.4 million, helping drive Bitcoin above $105,000.
The rally began around 8:00 PM on May 13 and peaked by 1:00 AM on May 14. Tether’s stablecoin also rose, suggesting fresh capital inflows across crypto platforms. By midday, Bitcoin retraced gains as sell pressure mounted. The asset dipped below $103,000 twice, while Tether maintained strength, hinting at continued institutional demand despite reduced momentum.
