TLDR
- Twenty One Capital boosted its Bitcoin holdings to 43,500 BTC ahead of a public listing through merger with Cantor Equity Partners
- CEO Jack Mallers predicts Bitcoin could reach $150,000 due to fixed supply and growing institutional demand
- The company is exploring issuing US dollar loans backed by Bitcoin collateral to generate additional revenue
- Twenty One will become the third-largest corporate Bitcoin treasury behind MicroStrategy and Tesla
- Tether contributed 5,800 BTC to the company’s reserves as part of an existing arrangement
Twenty One Capital has increased its Bitcoin holdings to 43,500 BTC ahead of its planned public listing. The bitcoin treasury firm received 5,800 BTC from Tether as part of an existing arrangement.
The acquisition brings Twenty One’s total Bitcoin value to over $5 billion at current prices. This positions the company as the third-largest corporate Bitcoin treasury globally.
The company trails only MicroStrategy and Tesla in corporate Bitcoin holdings. Twenty One plans to go public through a merger with Cantor Equity Partners.
CEO Jack Mallers spoke about Bitcoin’s price potential during a Bloomberg TV interview. He suggested the cryptocurrency could reach $150,000 due to supply constraints.
“If you want more bitcoin, you don’t go to the bitcoin factory. You have to go up in price,” Mallers said. He described Bitcoin as “the scarcest thing” in the market.
Mallers pointed to growing demand from institutional buyers and ETFs. He believes this competition for limited supply will drive prices higher.
New Revenue Strategies
Twenty One Capital is exploring ways to generate income beyond holding Bitcoin. The company is considering issuing US dollar loans backed by Bitcoin collateral.
“Optionality is wealth; for us everything is on the table because we think we can do anything,” a company spokesperson told Bloomberg. This strategy would allow the firm to earn revenue while maintaining its Bitcoin position.
The approach reflects a broader trend among crypto companies. Many firms are moving beyond simple holding strategies to generate yield.
Bitcoin mining companies like MARA Holdings and CleanSpark now use options and derivatives. These tools help them profit from market volatility while holding their crypto assets.
JPMorgan Chase is also reportedly exploring crypto-backed lending by 2026. The bank may offer loans against Bitcoin and Ethereum holdings.
Company Structure and Listing Plans
Tether and Bitfinex will maintain majority ownership after the public listing. SoftBank holds a minority stake in the company.
The shares will trade under the ticker “XXI” once the merger completes. The deal requires regulatory and shareholder approvals before moving forward.
Twenty One will introduce a “Bitcoin Per Share” metric for investors. This allows direct tracking of Bitcoin holdings rather than focusing on traditional earnings.
The company launched in April with backing from major crypto firms. Tether, Bitfinex, and SoftBank provide financial support for the venture.
All Bitcoin holdings will be auditable through on-chain proof of reserves. This transparency allows real-time verification of the company’s assets.
The crypto lending market has shown growth across multiple sectors. DeFi lending reached $70 billion in total value locked last quarter according to Sygnum.
Twenty One’s Bitcoin holdings have exceeded original projections by about 1,500 BTC. The company acquired these additional coins through its partnership with Tether.
