- Jack Mallers will lead Twenty One Capital, which will launch with over 42,000 BTC in its treasury, aiming to provide investors with Bitcoin exposure through traditional equity markets.
- Supported by Tether and SoftBank, the firm has raised $585 million through PIPE financing and convertible debt to purchase additional BTC and cover operations.
Co-founder and CEO at Strike, Jack Mallers, is taking up the reins at the head of Twenty One Capital, Inc., a financial firm focused on Bitcoin and planning to go public. The company, which will list via a SPAC merger with Cantor Equity Partners, is set to become one of the world’s largest corporate holders of Bitcoin. It’ll launch with over 42,000 BTC in its treasury.
A Look At Jake Mallers’ Recent Move
Twenty One Capital was backed by Tether and SoftBank and will be traded as $XXI in public markets. Specifically, as a firm, it has a mandate to increase the BTC holdings per share. Moreover, it will provide an avenue in which investors are able to get direct Bitcoin exposure through traditional equities.
The initiative is one that is being reported to have been part of an attempt by a group of partners that owns a large amount of Bitcoin to acquire the crypto in a multibillion-dollar sum, the Financial Times reported. It is being compared to MicroStrategy’s aggressive BTC accumulation strategy, as highlighted in our previous story. They need to pool resources and recreate that success in a newly structured body of a public entity.
The project, described by Mallers as a reaction to economic inefficiencies in contemporary capital markets, should “provide reliable money to the measurement of value and the correct allocation of capital.” He additionally noted that Bitcoin provides an answer for this problem, and ‘Twenty One is how we bring that answer to public markets.”
PIPE (Private Investment in Public Equity) financing plus convertible debt has brought the firm $585 million in capital. They will use these funds to purchase more Bitcoin and to support operational expenses. In line with this, Tether will purchase an equivalent of the full PIPE raise in BTC before the deal closes.
Tether CEO Offers Remarks On Latest BTC Initiative
Tether’s CEO, Paolo Ardoino, reinforced the company’s rationale for supporting the new venture. “Bitcoin is one of the only truly decentralized, immutable, and censorship-resistant asset[s], and its role as the foundation of a new financial system is inevitable,” he said.
Ardoino also pointed to Mallers’ leadership as a key factor in their involvement, adding, “With Jack at the helm, we are proud to support this effort to further BTC adoption and reinforce its role as the ultimate store of value.”
Twenty One Capital’s strategy does not simply consist of BTC holdings. The firm wants to create a full fledged Bitcoin native platform in capital markets and media. Its mission involves offering BTC-based financial instruments, creating new lending structures, and generating content aimed at a Bitcoin-savvy shareholder base. “This is not about beating the market,” Mallers said. He added, “We’re here to build a new one. A public stock, built by Bitcoiners, for Bitcoiners.”
