Twenty One Capital Launches with 42,000 Bitcoin, Challenges Michael Saylor’s Strategy

Twenty One Capital, a newly established Bitcoin treasury company, is set to challenge Michael Saylor’s Strategy with a mission to become the premier investment vehicle for Bitcoin exposure. Led by Jack Mallers, the founder of Strike, and backed by prominent entities such as Tether, SoftBank, and Cantor Fitzgerald, Twenty One Capital aims to offer a more capital-efficient and flexible approach to Bitcoin investment.

The company plans to launch with an initial holding of 42,000 Bitcoin, valued at approximately $3.9 billion. This substantial Bitcoin reserve will be contributed by Tether (23,950 BTC), SoftBank (10,500 BTC), and Bitfinex (7,000 BTC). These contributions will be converted into equity at a rate of $10 per share, positioning Twenty One Capital as a significant player in the Bitcoin market.

Twenty One Capital is pursuing a public listing through a blank-check merger with Cantor Equity Partners, with plans to trade under the ticker XXI on the Nasdaq. The company aims to raise $585 million through convertible bonds and equity financing, which will be used to support its strategic initiatives and growth.

In a statement, Mallers emphasized the company's mission to become the most successful Bitcoin-focused firm, aiming to build a new financial market rather than simply competing within the existing one. He described Twenty One Capital as a "public stock, built by Bitcoiners, for Bitcoiners," highlighting its unique position in the market.

Twenty One Capital has specifically compared its business model to that of Strategy, claiming that its approach offers a more "pure play" for investors seeking Bitcoin exposure. The company argues that Strategy's ability to create shareholder value through future Bitcoin purchases is limited due to the need for increasingly large investments to maintain its Bitcoin Per Share (BPS) ratio, which would diminish the per-share dollar impact of future capital deployments.

In contrast, Twenty One Capital positions itself as a more flexible and capital-efficient vehicle for Bitcoin investment. The company plans to offer a range of Bitcoin-focused products and services, including debt and equity products, an advisory service, a lending platform, and an educational platform. These offerings aim to accelerate Bitcoin adoption and literacy at both institutional and retail levels.

Twenty One Capital also intends to partner with industry players to host Bitcoin conferences, furthering its mission to promote Bitcoin education and adoption. The company's strategic partnerships and diverse product offerings position it as a comprehensive solution for investors seeking exposure to Bitcoin.

With a launch of 42,000 Bitcoin, Twenty One Capital would become the third-largest corporate Bitcoin holder, trailing only Strategy and Bitcoin mining firm MARA Holdings. This substantial Bitcoin reserve, combined with its strategic initiatives, positions Twenty One Capital as a formidable competitor in the Bitcoin market.

The launch of Twenty One Capital marks a significant development in the Bitcoin investment landscape, offering investors a new and potentially superior vehicle for capital-efficient Bitcoin exposure. With its strategic partnerships, diverse product offerings, and commitment to promoting Bitcoin adoption, Twenty One Capital is poised to make a significant impact in the market.