Twenty One Capital Launches with $3.9 Billion Bitcoin, Challenges MicroStrategy
2min read Jack Mallers, the founder and CEO of Bitcoin payments company Strike, has been appointed to lead Twenty One Capital, a newly established Bitcoin treasury firm. The company is set to launch with an impressive 42,000 Bitcoin, valued at approximately $3.9 billion, positioning it as the third-largest corporate Bitcoin holder globally. This move is seen as a direct challenge to Michael Saylor’s Strategy, formerly known as microstrategy, which has been a prominent player in the corporate Bitcoin space.
Twenty One Capital plans to go public through a special purpose acquisition company (SPAC) 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. This strategic move aims to provide investors with a more accessible and capital-efficient way to gain exposure to Bitcoin.
The new venture has secured significant backing from major players in the crypto industry. Tether will contribute 23,950 BTC, SoftBank will provide 10,500 BTC, and Bitfinex will add 7,000 BTC. These Bitcoin holdings will be converted into equity at $10 per share, according to the company’s April 23 statement. This backing underscores the confidence of these industry giants in the potential of Twenty One Capital to become a leading player in the Bitcoin market.
Twenty One Capital is positioning itself as a “superior vehicle” for investors seeking Bitcoin exposure, arguing that Strategy’s ability to create shareholder value through future Bitcoin purchases will be limited. With Strategy already holding a substantial amount of Bitcoin, Twenty One claims that the company would need increasingly larger investments to boost its Bitcoin Per Share (BPS), diminishing the per-share impact of future capital deployments. Mallers emphasized the company’s mission to build a new financial market centered around Bitcoin, stating, “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.”
Beyond Bitcoin accumulation, Twenty One Capital has plans to offer a range of Bitcoin-focused products and services. These include Bitcoin debt and equity products, an advisory service, a lending platform, and an educational platform. The company aims to accelerate Bitcoin adoption and literacy at both institutional and retail levels, partnering with industry players to host Bitcoin conferences and create pro-Bitcoin content for public shareholders. This comprehensive approach aims to evolve beyond Strategy’s model into a broader platform for Bitcoin-native innovation, offering new capital market instruments, lending models, and educational resources.
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. Paolo Ardoino, CEO of Tether, expressed strong support for the venture, stating, “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, 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.
Ask Aime: "New Bitcoin Treasury Firm, Twenty One Capital, Launched with $3.9B in Bitcoin Holdings"
