Cantor Equity Partners seals massive $458M Bitcoin investment deal, marking a significant move into the bitcoin market.
Cantor Equity Partners (CEP), a bitcoin treasury company, has disclosed a $458.7 million bitcoin acquisition as part of a pending merger with Twenty One Capital, a BTC-focused investment vehicle backed by Tether, Bitfinex, and SoftBank.
The transaction is structured through a complex business combination involving Tether Investments, the El Salvador affiliate of stablecoin issuer Tether, and iFinex, the parent company of Bitfinex. As part of the deal, “_4,812 BTC at an average price of $95,319,”_ with the tokens held in escrow and later to be sold to the merged company.
Tether, also known as USDT, is a type of stablecoin cryptocurrency pegged to the value of the United States dollar.
Introduced in 2014 by Bitfinex, it was designed to provide price stability and reduce volatility in cryptocurrency markets.
Tether's value is supposed to be backed by a corresponding amount of US dollars held in reserve.
However, its exact reserves have been subject to controversy and scrutiny over the years.
Twenty One Capital is being launched by Brandon Lutnick—the son of U.S. Commerce Secretary and Cantor Fitzgerald chairman Howard Lutnick—via a SPAC structure using Cantor Equity Partners. The company will be led by Strike CEO Jack Mallers and majority-owned by Tether and Bitfinex’s parent company, iFinex. SoftBank will take a significant minority stake in the venture.
CEP shares are higher by 3.7% in after hours trading, indicating confidence in the investment opportunity presented by the deal.
Cantor Equity Partners is a leading investment banking firm that provides strategic advisory services to clients in the financial industry.
Founded by Howard Lutnick, the company focuses on mergers and acquisitions, equity and debt financings, and restructuring.
With expertise in various sectors, including healthcare, technology, and consumer products, Cantor Equity Partners helps clients navigate complex transactions and achieve their business goals.
The firm's team of experienced professionals delivers tailored solutions to meet the unique needs of each client.
Blockchain data shows that the escrow wallet, disclosed in the filing, received the tokens from a Bitfinex hot wallet on May 9. The wallet’s “_bitcoin holdings are worth $500 million at current prices,”_ according to Arkham data.
Bitfinex is a popular cryptocurrency exchange founded in 2012.
It allows users to trade various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
The platform offers advanced trading features, such as margin trading and futures contracts.
Bitfinex is known for its high liquidity and competitive fees.
According to CoinMarketCap, it has a daily trading volume of over $1 billion.
The exchange is headquartered in Hong Kong and operates under the jurisdiction of the British Virgin Islands.
- coindesk.com | Cantor Equity Partners Discloses $458M Bitcoin Acquisition
