Twenty One Capital’s shares dropped 20% on its US market debut after merging with Cantor Equity Partners, opening at $10.74 despite holding over $4 billion in Bitcoin, marking a challenging start for the BTC-focused firm backed by Tether and led by Strike CEO Jack Mallers.
Stock Performance: Shares closed at $11.42 on Wednesday, down nearly 20% in 24 hours, with a slight after-hours recovery to $11.67.
Bitcoin Holdings: The company boasts over 43,500 BTC, ranking third among public firms per BitcoinTreasuries.NET data.
Leadership and Backing: Founded by Jack Mallers, supported by Tether and Bitfinex’s SoftBank Group, emphasizing Bitcoin-centric operations without a defined public plan yet.
Discover why Twenty One Capital’s stock tumbled 20% on debut despite $4B+ Bitcoin holdings. Backed by Tether, led by Jack Mallers—explore opportunities in crypto brokerage and lending. Stay informed on BTC treasury trends.
What Happened During Twenty One Capital’s Market Debut?
Twenty One Capital, the latest US-based crypto treasury firm, experienced a turbulent trading debut as shares fell 20% following its merger with special purpose acquisition company Cantor Equity Partners. The stock opened at $10.74 on Tuesday, significantly below Cantor’s Monday close of $14.27, and closed Wednesday at $11.42, reflecting a 19.97% drop over 24 hours. Despite a modest 2.2% after-hours uptick to $11.67, the company’s market cap hovered around $4 billion based on outstanding shares.
This debut came amid high expectations for one of 2025’s most anticipated crypto public listings. Backed by stablecoin giant Tether and Bitfinex’s affiliation with SoftBank Group, Twenty One Capital positions itself as a Bitcoin powerhouse, holding more than 43,500 BTC valued over $4 billion. According to data from BitcoinTreasuries.NET, this places it third in Bitcoin reserves among publicly traded companies, trailing only major players like Bitcoin miner MARA Holdings. Jack Mallers, founder and CEO of the Bitcoin payment platform Strike, stepped in as Twenty One’s CEO, bringing his expertise to steer the firm’s direction.
The market’s reaction highlights broader volatility in crypto-exposed equities. Earlier in the year, as Bitcoin surged to new highs in October, investor enthusiasm propelled similar treasury companies. However, a subsequent market correction has pressured shares in firms heavily tied to digital assets, underscoring the risks of crypto-centric strategies in public markets.
Why Did Twenty One Capital’s Shares Slide on Debut?
The 20% plunge in Twenty One Capital’s shares can be attributed to several factors, including a lack of transparency around its operational roadmap and broader market dynamics affecting crypto holdings. Investors appeared wary of the firm’s absence of publicly detailed business plans, leading to an initial sell-off despite its substantial Bitcoin reserves. Mallers addressed this in an interview with CNBC’s “Money Movers,” clarifying that Twenty One Capital is “not a treasury company” but an operating entity aiming to build cash-generating businesses.
“We don’t want the market to think of us and price us as just a treasury asset,” Mallers stated. “We do have a lot of Bitcoin, but we’re also building a business.” He outlined potential ventures in brokerage, exchanges, credit, and lending, all centered on Bitcoin products to drive revenue streams. When pressed for specifics, Mallers noted, “These things, we’ll come out with them sooner rather than later,” suggesting imminent announcements to provide clarity.
Jack Mallers appearing on CNBC’s “Money Movers” on Tuesday. Source: CNBC
This ambiguity contrasts with the straightforward “buy and hold” models of other crypto treasury companies that have flooded the US market in 2025, inspired by pioneers like MicroStrategy. These firms raise capital primarily to accumulate more Bitcoin, but Twenty One’s emphasis on operational development sets it apart. Mallers expressed strong conviction in Bitcoin’s long-term value, telling CNBC, “We see Bitcoin as the forest through the trees. It is the opportunity, and no one is seemingly focused on it. The story of this equity is to focus solely on Bitcoin and deliver value to shareholders primarily through Bitcoin.”
Supporting data from market analysts reinforces this volatility. Public companies with significant crypto exposure have seen share prices correlate closely with Bitcoin’s price movements; for instance, a 10% BTC dip in recent weeks has dragged down sector averages by up to 15%, per reports from financial research firm Messari. Additionally, the merger with a blank-check company introduced typical SPAC-related discounts, where post-merger enthusiasm often fades without immediate catalysts. Tether’s backing, known for its $100 billion+ stablecoin reserves, and SoftBank’s involvement through Bitfinex, add credibility, but investors may require more than holdings to justify valuations exceeding $4 billion.
Twenty One Capital’s third-place ranking in corporate Bitcoin holdings—behind MARA Holdings and MicroStrategy—positions it well for appreciation if Bitcoin rebounds. BitcoinTreasuries.NET tracks over 200 entities, showing that top holders have historically outperformed broader indices during bull cycles, with average returns of 200% in 2024 alone. Yet, without a clear path to profitability beyond asset appreciation, the debut slide reflects prudent caution from market participants.
Frequently Asked Questions
What is Twenty One Capital’s Bitcoin Holding Strategy?
Twenty One Capital holds over 43,500 Bitcoin, valued at more than $4 billion, focusing on long-term value creation through BTC-centric operations rather than mere accumulation. Led by Jack Mallers, the firm plans to launch businesses in brokerage, exchanges, credit, and lending to generate cash flow, differentiating it from pure treasury models, as confirmed in recent CNBC interviews.
Who Backs Twenty One Capital and How Does It Affect Its Market Position?
Twenty One Capital is supported by Tether, the leading stablecoin issuer, and SoftBank Group via Bitfinex, providing substantial financial and operational expertise. This backing enhances its credibility in the crypto space, positioning it as a key player among public firms with large Bitcoin treasuries, potentially stabilizing its stock amid market fluctuations.
Key Takeaways
- Challenging Debut: Shares fell 20% on opening, closing at $11.42, due to unclear business plans despite strong Bitcoin holdings.
- Strategic Focus: CEO Jack Mallers emphasizes building operating businesses in crypto services, not just treasury functions, to drive shareholder value.
- Market Context: As Bitcoin volatility persists, firms like Twenty One must demonstrate revenue potential to regain investor confidence and capitalize on BTC’s upside.
Conclusion
Twenty One Capital’s market debut underscores the high stakes in the evolving landscape of Bitcoin treasury companies, where substantial holdings meet investor demands for operational clarity. With over $4 billion in BTC and backing from Tether and SoftBank, the firm, under Jack Mallers’ leadership, is poised to explore brokerage and lending opportunities. As the crypto market navigates 2025’s uncertainties, Twenty One Capital’s commitment to Bitcoin-focused innovation could deliver significant value—investors should watch for upcoming business announcements to gauge its trajectory.