TLDR
Jack Mallers, founder of Strike, will lead Twenty One Capital, a new Bitcoin treasury company
The firm plans to launch with 42,000 Bitcoin (worth $3.9 billion) with backing from Tether, SoftBank, and Bitfinex
Twenty One Capital aims to become a “superior vehicle” to Michael Saylor’s Strategy (formerly MicroStrategy) for investors seeking Bitcoin exposure
The company will go public via SPAC merger with Cantor Equity Partners, trading under ticker XXI on Nasdaq
Beyond Bitcoin accumulation, Twenty One plans to offer Bitcoin debt/equity products, advisory services, lending platforms, and educational resources
Jack Mallers, the founder and CEO of Bitcoin payments company Strike, has been named to head Twenty One Capital, a new Bitcoin treasury firm aiming to challenge Michael Saylor’s Strategy (formerly MicroStrategy) as the leading corporate Bitcoin holder. The company plans to launch with 42,000 Bitcoin worth approximately $3.9 billion, making it the third-largest corporate Bitcoin holder globally.
Twenty One Capital revealed plans to go public through a blank-check merger with Cantor Equity Partners. The firm will trade under the ticker XXI on the Nasdaq once it finalizes agreements with investors to raise $585 million through convertible bonds and equity financing.
The new venture has secured major backing from crypto industry heavyweights. Roughly 23,950 BTC will come from Tether, 10,500 BTC from SoftBank, and 7,000 BTC from Bitfinex. These Bitcoin holdings will be converted into equity at $10 per share according to the company’s April 23 statement.
A Direct Challenge to Strategy
Twenty One Capital isn’t shy about its intentions to compete with Strategy. In an investor presentation to the SEC, the company explicitly positioned itself as a “superior vehicle for investors seeking capital-efficient Bitcoin exposure.”
The firm argues that Strategy’s ability to create shareholder value through future Bitcoin purchases will be limited. With Strategy already holding 534,741 BTC, Twenty One claims the company would need increasingly larger investments to boost its Bitcoin Per Share (BPS), diminishing the per-share impact of future capital deployments.
“Our mission is simple: to become the most successful company in Bitcoin, the most valuable financial opportunity of our time. We’re not here to beat the market, we’re here to build a new one,” said Mallers. “A public stock, built by Bitcoiners, for Bitcoiners.”
Twenty One positions itself as a more “pure play” for investors seeking Bitcoin exposure. The company promises Bitcoin-native operations and greater “flexibility” for strategic capital raises compared to its main competitor.
Beyond Bitcoin Accumulation
While Bitcoin accumulation forms the core of Twenty One’s strategy, the company has plans beyond simply holding the cryptocurrency. The firm intends to build out several Bitcoin-focused offerings, including Bitcoin debt and equity products, an advisory service, a lending platform, and an educational platform.
“Twenty One’s mission will be to accelerate Bitcoin adoption and Bitcoin literacy at both institutional and retail levels,” the firm stated in its announcement. The company will also partner with industry players to host Bitcoin conferences.
This comprehensive approach aims to evolve beyond Strategy’s model into a broader platform for Bitcoin-native innovation. Twenty One intends to offer new capital market instruments, lending models, and pro-Bitcoin content for public shareholders.
The news sparked a massive rally in Cantor Equity Partners shares, which jumped 54.2% to $16.50 on April 23. The stock rose another 25.1% in after-hours trading according to Google Finance data. CEP will convert to XXI once the $585 million agreement is completed.
Strategic Partnerships
Twenty One Capital will be majority-owned by Tether and crypto exchange Bitfinex, while Japanese investment holding firm SoftBank will own a minority share. This venture strengthens Tether’s ties with Cantor, which manages US Treasury reserves backing Tether’s USDT stablecoin with its $145.3 billion market cap. Cantor also owns a 5% stake in the stablecoin issuer.
Paolo Ardoino, CEO of Tether, expressed strong support for the venture: “Bitcoin is one of the only truly decentralized, immutable, and censorship-resistant asset, and its role as the foundation of a new financial system is inevitable. With Jack at the helm, we are proud to support this effort to further Bitcoin’s adoption and reinforce its role as the ultimate store of value.”
The launch of Twenty One Capital with 42,000 Bitcoin would make it the third-largest corporate Bitcoin holder. Only Strategy and Bitcoin mining firm MARA Holdings, which holds 47,600 BTC according to BitcoinTreasuries.NET data, would rank higher.
Tether has committed to acquiring Bitcoin equivalent to the full PIPE raise ahead of closing, demonstrating strong confidence in the new venture. With its dual focus on financial products and Bitcoin-centered media, Twenty One aims to create a comprehensive platform for Bitcoin investment and education.
