Bitcoin's New Kid on the Block: Twenty One Capital
Jack Mallers will preside over Twenty One Capital, boasting a treasury of 42,000 Bitcoins.
Jack Mallers, the CEO of Bitcoin payments company Strike, is stepping up to lead Twenty One Capital – a new Bitcoin treasury company aiming to give Michael Saylor's Strategy (formerly MicroStrategy) a run for its money. This fresh venture puts 42,000 Bitcoin (valued at approximately $3.9 billion) on the table, making it a formidable competitor in the corporate Bitcoin world.
Riding the Blank-Check Train
Twenty One Capital plans to go public through a merger with Cantor Equity Partners, trading under the ticker XXI on Nasdaq. With the support of big-name backers like Tether, SoftBank, and Bitfinex, the firm is set to raise a whopping $585 million via convertible bonds and equity financing.
Taking Down the Giant
Twenty One Capital doesn't hold back on its ambitions to outperform Strategy. In its SEC investor presentation, the company boldly claims it offers a "superior vehicle for investors seeking capital-efficient Bitcoin exposure." It argues that Strategy's ability to create shareholder value through future Bitcoin purchases is limited. With Strategy already owning 534,741 BTC, Twenty One argues the company would need to invest increasingly larger amounts to boost its Bitcoin Per Share (BPS), thus diminishing the per-share impact of future capital deployments.
Jack Mallers sums it up: "We're not here to beat the market, we're here to build a new one. A public stock, built by Bitcoiners, for Bitcoiners."
More Than Just a Hodler
While Bitcoin accumulation is the core of Twenty One's strategy, the company has much more up its sleeve. It intends to develop a variety of Bitcoin-focused offerings, such as Bitcoin debt and equity products, advisory services, lending platforms, and educational resources. The ultimate goal is to foster Bitcoin adoption and improve literacy, partnering with industry players to host Bitcoin conferences and provide pro-Bitcoin content for public shareholders.
The Power Trio
Tether, SoftBank, and Cantor Fitzgerald form the powerful backing for Twenty One Capital. With Tether and Bitfinex taking the reins as majority owners, and SoftBank taking a minority share, the venture strengthens Tether's ties with Cantor. This partnership could be significant, as Cantor manages the reserves for Tether's USDT stablecoin with its massive $145.3 billion market cap.
Paolo Ardoino, CEO of Tether, expressed enthusiastic support for the venture: "Bitcoin is one of the only truly decentralized, immutable, and censorship-resistant assets, 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 Top Three
Twenty One Capital's 42,000 Bitcoin would place it as the third-largest corporate Bitcoin holder, with only Strategy and Bitcoin mining firm MARA Holdings, with 47,600 BTC, ahead of it. Tether has shown confidence in the new venture by committing to acquiring Bitcoin equivalent to the full PIPE raise ahead of closing.
With a dual focus on financial products and Bitcoin-centered media, Twenty One aims to create a comprehensive platform for Bitcoin investment and education.
- Jack Mallers, the CEO of Bitcoin payments company Strike and now the leader of Twenty One Capital, aspires to outperform MicroStrategy's strategy with his new Bitcoin treasury company.
- Twenty One Capital, with 42,000 Bitcoin valued at around $3.9 billion, intends to demonstrate superiority in the corporate Bitcoin world by going public through a merger with Cantor Equity Partners.
- Jack Mallers, who is building a new market with Twenty One Capital, believes it will not only beat the market but create a new one, aiming to empower Bitcoin investors.
- In addition to its Bitcoin accumulation strategy, Twenty One Capital plans to develop various Bitcoin-focused solutions like Bitcoin debt and equity products, advisory services, lending platforms, and educational resources to boost Bitcoin adoption.
- The power trio of Tether, SoftBank, and Cantor Fitzgerald forms the significant backing for Twenty One Capital, with Tether and Bitfinex taking the majority ownership, and SoftBank holding a minority share, positively impacting Tether's USDT stablecoin reserves management.
