The global largest stablecoin issuer Tether has directly invested in the US Bitcoin enterprise Twenty One, which has purchased 4,812 Bitcoins. After the merger, the initial assets exceed 42,000 BTC, becoming the third-largest Bitcoin holder among listed companies.
(Tether's Ambition and Blueprint Behind Directly Investing in Twenty One with Bitcoins)
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ToggleTwenty One Has Purchased 4,812 Bitcoins
According to the SEC document, Tether has purchased $468.7 million worth of Bitcoin under the terms of the corporate merger agreement and placed the Bitcoin in digital wallets held or operated by Tether. Based on the provided wallet address, 4,812.22 Bitcoins were purchased, with an average cost of $97,402 per Bitcoin.
The purchase funds came from a private investment (PIPE) and a convertible bond offering of $500 million.
Who Are the Initial Investors of CEP?
The US Bitcoin enterprise Twenty One will merge and go public with Cantor Equity Partners (CEP), a special purpose acquisition company (SPAC) under Cantor Fitzgerald, with Jack Mallers, founder of Strike, serving as CEO. The shareholder lineup includes Tether, Japanese SoftBank Group, Bitfinex, and Cantor Fitzgerald.
Tether and Bitfinex will directly transfer 31,500 Bitcoins in exchange for equity in the new company. The SoftBank Group will buy Bitcoin with cash through Tether, becoming the second-largest shareholder.
After the transaction, Tether will have 51.7% voting rights, giving it absolute say.
CEP Will Become a Comprehensive Bitcoin Company
Twenty One emphasizes that it is not just a Bitcoin reserve strategy company but also plans to promote Bitcoin adoption and Bitcoin culture, such as producing Bitcoin-exclusive content and media, becoming a cultural promoter of the Bitcoin community.
Additionally, Twenty One plans to launch various "Bitcoin-native financial products" like Bitcoin lending and Bitcoin capital market products.
SoftBank's Stargate Investment Fund Issue: Will Twenty One Change?
SoftBank Group, the second-largest shareholder of Twenty One, recently faced funding issues with its Stargate investment plan in collaboration with OpenAI. The plan originally aimed to invest $50 billion in AI infrastructure over four years. However, due to US tariff policies, lenders and investors are cautious about high-risk investments, causing financing progress to stall.
It is currently unconfirmed whether SoftBank's funds for Twenty One are in place, but compared to Stargate's $50 billion, SoftBank's investment in this case is relatively small. According to previous investment prospectuses, SoftBank will invest with cash equivalent to 10,500 Bitcoins, which should be around $1 billion.
CEP Once Surged to $59 and Then Fell
Twenty One was listed on the Nasdaq under the ticker "CEP" before the transaction completion. After the merger, it will be listed with the trading code "XXI".
CEP's stock price once surged to $59 on 5/1 but has since fallen to $29, perhaps as investors are still waiting and watching the subsequent merger progress.
Risk Warning
Cryptocurrency investment carries high risks, and its price may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
As more companies choose to include Bitcoin in their balance sheets as "corporate reserves", should Coinbase follow suit? CEO Brian Armstrong candidly admitted in the Q&A of the 2025 Q1 online financial report on 5/10 that he had seriously considered investing 80% of assets in Bitcoin but ultimately felt the risk was too high and could potentially destroy the company. This statement indirectly highlights the difference between Coinbase's positioning and Bitcoin-heavy enterprises like MicroStrategy.
ToggleCoinbase Once Wanted to Go All-In on BTC, Stability Was "More Important" in Early Stages
Armstrong stated that during a conversation with users, the team was asked:
Since entering the crypto industry 8 years earlier than MicroStrategy, why didn't they start accumulating Bitcoin earlier?
Armstrong candidly admitted that they had indeed discussed using 80% of their assets to buy BTC, but ultimately abandoned the idea because the company was still in its early growth stage, and a sudden Bitcoin price crash could potentially bankrupt the entire company.
He gave an example: "If our money could originally last 18 months, and suddenly it's reduced to 10 months, the entire company might not survive."
Coinbase Currently Still Holds BTC, with About 25% Cash in Crypto Assets
Despite abandoning the "heavy Bitcoin strategy", Coinbase still holds BTC. Armstrong added:
"Currently, about 25% of the company's net cash is in crypto assets. We won't put out 80%, as that would be truly too risky."
Although not as extreme as MicroStrategy's approach, it still demonstrates a certain level of confidence.
CFO Haas Says Coinbase is Operational, Not an Investment Company
CFO Alesia Haas also added that Coinbase is essentially an operational company, with the primary goal of developing new products and promoting cryptocurrency adoption, aiming to bring one billion people into the crypto world.
Unlike some companies that primarily accumulate assets through additional investments.
"Coinbase has never considered itself an investment company, nor has it made its asset portfolio a core strategy," Haas emphasized.
Coinbase Crypto Assets Continue to Grow, Increasing by $150 Million in One Quarter
According to Haas's public data, as of the first quarter of 2025, Coinbase's total crypto assets were $1.3 billion, increasing by approximately $150 million from January to March. The asset allocation is primarily in Bitcoin, with a small portion in other cryptocurrencies.
She added: "We plan to continue expanding this asset portion, so everyone can rest assured."
How Far is it from MicroStrategy? Compare and You'll Know
Although Coinbase holds a significant amount of crypto assets, currently 9,267 Bitcoins, the gap compared to MicroStrategy, the largest institutional Bitcoin player, is still vast.
Currently, MicroStrategy:
- Has accumulated over 550,000 Bitcoins
- Total position value exceeds $58.2 billion
- Has now realized approximately $30 billion in book gains.
Coinbase Aims to Build Bridges Steadily, Strategy Bets on Faith and Future
In summary, Coinbase prioritizes long-term operations and product development, choosing a relatively conservative asset allocation strategy. Companies like MicroStrategy, on the other hand, view Bitcoin as their main focus, pursuing a high-risk, high-return approach. Neither strategy is right or wrong; one is building bridges, while the other is betting on direction.
Risk Warning
Cryptocurrency investment carries high risks, and prices may fluctuate dramatically. You may lose all of your principal. Please carefully assess the risks.
