Twenty One Boosting Bitcoin Holdings; CEO Jack Mallers Sees $150K BTC Incoming
Twenty One Capital, a bitcoin treasury firm backed by Tether and SoftBank, is significantly bolstering its bitcoin reserves. The firm announced plans to add 5,800 BTC to its holdings before its public listing via a merger with Cantor Equity Partners. This addition, primarily driven by Tether as per a pre-existing agreement, will elevate Twenty One’s total BTC holdings to over 43,500, exceeding $5 billion based on current market prices. This positions the company as the third-largest corporate bitcoin holder globally, trailing only MicroStrategy and Tesla.
CEO Jack Mallers, also head of the Strike payments app, attributes this accumulation strategy to bitcoin’s inherent scarcity, emphasizing its limited supply as a key driver of future price appreciation. He posits that increasing demand from institutional investors and even sovereign nations will intensify competition for the limited bitcoin supply, leading to potentially rapid price increases. Mallers highlights bitcoin’s inelasticity to demand, suggesting that the market will find the necessary supply, albeit at progressively higher prices. He envisions a scenario where the price climbs to reach the levels required to satisfy growing demand. His projections involve potential price targets far exceeding current levels, suggesting a belief in substantial future price appreciation.
To enhance transparency for investors, Twenty One Capital will introduce a “Bitcoin Per Share” metric, enabling direct tracking of bitcoin holdings, independent of traditional earnings reporting. Post-listing, Tether and Bitfinex will retain majority ownership, with SoftBank holding a minority stake. The company aims to trade under the ticker “XXI” upon successful completion of the merger, subject to regulatory and shareholder approvals. A key aspect of the company’s transparency initiative is the commitment to real-time auditable on-chain proof of reserves for all bitcoin holdings, providing investors with enhanced confidence and visibility. This move is part of a broader trend of institutional adoption of Bitcoin and highlights the growing interest in digital assets among major financial players. The success of this strategy will depend on several factors, including regulatory developments and the overall health of the cryptocurrency market.
