Jack Mallers, the CEO of Strike, has launched Twenty One Capital, Inc., a Bitcoin-native company focused on acquiring and holding Bitcoin, with an initial treasury of over 42,000 BTC, valued at approximately $3.6 billion based on a Bitcoin spot price of $84,863.57 as of April 21, 2025. The company is backed by major players like Tether, SoftBank Group, and Bitfinex, and is set to go public via a SPAC merger with Cantor Equity Partners, trading under the ticker $XXI on Nasdaq.
Twenty One aims to maximize Bitcoin ownership per share, offering investors direct exposure to Bitcoin through a public company structure, and plans to develop Bitcoin-native financial products, such as lending and capital market instruments. Mallers, who will continue his role at Strike, positions Twenty One as a vehicle to accelerate Bitcoin adoption, comparing its strategy to MicroStrategy but claiming greater flexibility for capital raises. The venture has raised $585 million through convertible notes and equity financing to support further Bitcoin purchases and operations.
The acquisition of 42,000 BTC reduces Bitcoin’s circulating supply, which could exert upward pressure on prices, especially given Bitcoin’s fixed supply cap of 21 million coins. This aligns with the narrative of Bitcoin as “digital gold” with scarcity-driven value. Twenty One’s plans for further Bitcoin purchases, supported by $585M in financing, could amplify this effect, potentially contributing to price volatility or sustained bullish trends if demand remains strong.
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Twenty One’s focus on developing Bitcoin-native financial products (e.g., lending, capital market instruments) could bridge traditional finance and crypto, creating new use cases for Bitcoin beyond speculation or holding. This might attract more sophisticated investors and integrate Bitcoin deeper into global financial systems. By leveraging Bitcoin as collateral or a base asset, Twenty One could pioneer scalable DeFi-like solutions within a regulated framework, potentially challenging existing crypto lending platforms.
Positioning itself as a more flexible alternative to MicroStrategy, Twenty One could spark competition among Bitcoin-focused public companies, driving innovation but also raising risks of over-leveraging or speculative bubbles if valuations disconnect from fundamentals. The involvement of Tether raises questions about stablecoin-backed Bitcoin accumulation strategies, which could invite regulatory scrutiny given Tether’s controversial history.
As a publicly traded entity, Twenty One will face stricter regulatory oversight, which could set precedents for how Bitcoin-centric companies navigate compliance, custody, and reporting. This might legitimize Bitcoin in the eyes of regulators but also expose the company to legal risks if crypto regulations tighten. The SPAC structure and reliance on convertible notes carry financial risks, especially in volatile markets. If Bitcoin’s price crashes, Twenty One’s valuation and investor confidence could suffer, impacting its ability to raise capital.
Mallers’ vision to accelerate Bitcoin adoption through Twenty One could amplify Strike’s efforts in payments and remittances, reinforcing Bitcoin’s utility. Success here might inspire similar ventures, further embedding Bitcoin in everyday finance. However, the focus on Bitcoin exclusivity might sideline other cryptocurrencies, reinforcing Bitcoin maximalism at the expense of broader blockchain innovation.
Twenty One’s launch reflects a maturing crypto market where Bitcoin is increasingly viewed as a strategic asset rather than a speculative gamble. This could shift public perception, especially among traditional investors. Mallers’ dual role at Strike and Twenty One positions him as a key figure in Bitcoin’s narrative, potentially influencing market sentiment and policy debates around cryptocurrency.
Twenty One Capital could catalyze Bitcoin’s mainstream integration, drive price dynamics, and innovate financial products, but it also faces risks from market volatility, regulatory challenges, and competitive pressures. Its success will hinge on execution, Bitcoin’s long-term performance, and the broader evolution of crypto markets.
