Shares of Twenty One Capital (XXI), a newly public U.S. crypto treasury company, fell about 20% on their trading debut after the business completed a merger with blank-check firm Cantor Equity Partners. The stock opened at $10.74 on Tuesday, below Cantor’s $14.27 closing price the previous day.
Twenty One’s shares finished Wednesday’s session at $11.42, down roughly 19.97% over 24 hours, and later gained about 2.2% in after-hours trading to $11.67. That price implies a market capitalization near $4 billion based on outstanding shares.
The Bitcoin-focused company, backed by stablecoin issuer Tether, crypto exchange Bitfinex and Japan’s SoftBank Group, named Strike founder Jack Mallers as CEO. Twenty One holds more than 43,500 BTC — valued at over $4 billion — placing it third among public companies by Bitcoin holdings, according to BitcoinTreasuries.NET, behind miner MARA Holdings.
Twenty One has not detailed a public operating plan or given a timeline for launching one. Mallers told CNBC the firm is “not a treasury company,” stressing that the intent is to build an operating business rather than be valued solely as a Bitcoin holder. “We’re building an operating company, we’re bringing a lot of Bitcoin products to market with the intent to have cash flow,” he said, citing opportunities in brokerage, exchange, credit and lending. When asked for specifics, Mallers said the company would disclose plans “sooner rather than later.”
This listing comes amid a wave of crypto treasury companies that have entered public markets this year, following a model popularized by Strategy: raise capital, buy and hold crypto assets, and use funds for further purchases. Many of those firms saw strong investor interest when Bitcoin peaked in October, but subsequent declines in the crypto market have weighed on the shares of companies exposed to the sector.
Mallers appears to be banking on his track record, support from partners like Tether, and strong conviction in Bitcoin to sustain investor interest. “We see Bitcoin as the forest through the trees,” he told CNBC, describing Twenty One’s equity story as focused on Bitcoin and delivering shareholder value primarily through the asset.
