Bitcoin Whale Moves Shake Up Finance—Banks Left Counting Pennies
When $1B in BTC changes hands for less than a Starbucks latte, Wall Street’s legacy rails start looking rusty.
Cost efficiency? Try cost annihilation. A single Bitcoin transaction now settles what would take traditional finance armies of intermediaries—and does it before your bank’s morning memo hits the inbox.
Meanwhile, hedge funds still charge 2-and-20 for the privilege of moving at dial-up speed.
$105,377 network recently witnessed a remarkable series of massive transfers that turned heads in the financial industry. Over the last 48 hours, a single transaction moved an astonishing 10,500 BTC, valued at $1.1 billion. Tether CEO Paolo Ardoino explained that these assets were transferred to a new institutional fund, Twenty One Capital, which exclusively holds Bitcoin as collateral for pre-funding purposes. This significant movement in the crypto space, involving a total of 37,229 BTC and approximately $4 billion at current prices, highlights the scale of this fund. Tether’s 1.5 billion BTC contribution is complemented by expected inputs from SoftBank and Bitfinex of $900 million and $600 million, respectively, with an additional $550 million to be raised via private bonds and placements.
ContentsGroundbreaking bitcoin Investment by Tether and SoftBankSignificance of the New Fund for Corporate Finance
Groundbreaking Bitcoin Investment by Tether and SoftBank
A significant first block transfer of Bitcoin worth $1.5 billion demonstrated the cost efficiency of the Bitcoin Blockchain, with the transaction incurring a minimal fee of only 0.00036 BTC (approximately $2). This fee is almost negligible when compared to traditional financial systems.
Analyst Bit Paine emphasized the inexpensive nature of Bitcoin network transactions, underscoring that moving $1.5 billion for such a low cost is something that traditional financial systems cannot compete with. Paine suggests that this advantage could increase the use of Blockchain technology in future financial transactions, such as borrowing, repo, and secured credit operations.
The 14,000-BTC transaction sourced from SoftBank represents its initial step in accelerating its cryptocurrency infrastructure strategy. This transparent transaction builds trust in the “budget first, listing second” model for institutional investors while boosting market transparency through Blockchain analytics.
Ardoino revealed that these transactions were the culmination of extensive preparations, with the fund’s cold wallet architecture designed to meet security and transparency standards. At transaction completion, multi-signature wallets minimized inter-exchange liquidity risk, keeping balances auditable on public Blockchain explorers.
SoftBank’s Vision Fund is overseeing the process, planning to hold Bitcoin as a long-term reserve and collateralize it in interest-bearing instruments. This strategy mirrors a “Bitcoin treasury” approach, with Twenty One Capital aiming to scale through pre-IPO investment.
Significance of the New Fund for Corporate Finance
The development serves as a critical reference in corporate finance discussions around Bitcoin’s status as a reserve asset. The timing corresponds with growing ETF-based demand, central banks signaling potential easing of monetary policy, and rising geopolitical risks.
Tether’s direct capital investment responds to longstanding transparency debates, while SoftBank’s participation signifies trust in Blockchain assets by major Asian corporations. The transparent fund structure allows investors to monitor collateral values instantly, adding a LAYER of oversight beyond traditional fund accounting.
As 37,229 BTC complete the pre-funding process, Twenty One Capital’s initial closure reaches $4 billion, making it one of the largest Bitcoin treasuries. The hybrid capital structure, involving Tether, SoftBank, Bitfinex, and Cantor Fitzgerald, positions it as a pioneering example of institutional fund models rooted in Blockchain transparency.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.