Twenty-One Capital CEO Jack Mallers argues that publicly traded companies holding Bitcoin in their treasuries provide superior investment opportunities compared to cryptocurrency exchange-traded funds, as Bitcoin reached the unprecedented $120,000 milestone. The 31-year-old entrepreneur, known for founding Bitcoin payment company Strike and facilitating cryptocurrency adoption in El Salvador, made his case during the inaugural episode of Fortune's Crypto Playbook vodcast.
What to Know:
- Bitcoin treasury companies focus exclusively on accumulating cryptocurrency assets rather than tracking market performance like ETFs
- Twenty-One Capital, backed by Tether and SoftBank, plans to go public through merger with Cantor Equity Partners
- The treasury strategy originated with MicroStrategy's Michael Saylor and has attracted multiple new companies in recent months
The Treasury Strategy Advantage
Mallers contends that Bitcoin treasury firms offer distinct advantages over traditional ETFs for mainstream investors seeking cryptocurrency exposure. "What makes us uniquely different than an ETF is we're an operating company, so we're founded as a Bitcoin business with a core goal of increasing what we call Bitcoin per share," he explained to Fortune.
The approach addresses practical barriers that prevent institutional investors from direct cryptocurrency ownership. Traditional investors often lack access to crypto exchanges or the technical knowledge required for self-custody through hardware wallets. Treasury companies eliminate these complications by managing Bitcoin holdings within familiar corporate structures.
Twenty-One Capital positions itself as a solution for capital trapped in public markets. "What we figured is we would put together a vehicle and a business that solves that problem," Mallers said. "I'm making Bitcoin more useful to the world."
Market Timing and Corporate Backing
The company's public debut comes at a pivotal moment for cryptocurrency markets. Bitcoin's surge past $120,000 has intensified Wall Street's search for new investment vehicles in the digital asset space. Several firms have recently adopted the treasury strategy, with some launching operations within the past few months.
Twenty-One Capital brings significant financial backing to the competitive landscape.
Stablecoin leader Tether will serve as the majority owner, while technology investment giant SoftBank provides additional capital support. This combination of cryptocurrency industry expertise and traditional venture capital represents a hybrid approach to Bitcoin treasury operations.
The company plans to complete its public listing through a merger with Cantor Equity Partners, a special-purpose acquisition company. Cantor Fitzgerald sponsors the SPAC, creating additional connections within the traditional finance sector. The firm previously operated under the leadership of current U.S. Commerce Secretary Howard Lutnick and now functions under his son Brandon's direction.
Competitive Landscape and Market Position
MicroStrategy pioneered the Bitcoin treasury model and recently rebranded to Strategy, signaling its commitment to the cryptocurrency investment thesis. The company's approach demonstrated how balance sheet capital could generate returns through Bitcoin accumulation rather than traditional corporate activities.
Mallers distinguishes his company's approach from broader market trends.
"We've heard a lot of how Wall Street has arrived to Bitcoin," he told Fortune. "We view Twenty-One as 'Bitcoin has arrived on Wall Street.'"
The timing of Twenty-One's public debut remains uncertain, though the company and Cantor Equity Partners announced confidential SEC filings last week. Regulatory approval processes will determine the actual launch date for public trading.
Strategic Vision and Market Access
The Bitcoin treasury model represents a fundamental shift in how corporations approach cryptocurrency investment. Rather than treating digital assets as speculative holdings, these companies integrate Bitcoin accumulation into their core business strategies. This approach appeals to investors seeking cryptocurrency exposure without direct market participation.
Mallers previously worked with El Salvador President Nayib Bukele on the country's Bitcoin legal tender initiative, demonstrating practical application of cryptocurrency in national economic systems. The company's backers provide both cryptocurrency industry credibility and traditional investment expertise. Tether's involvement offers insights into stablecoin operations and digital asset management, while SoftBank brings venture capital experience and corporate governance knowledge.
Closing Thoughts
Twenty-One Capital's emergence reflects growing institutional acceptance of Bitcoin as a treasury asset, with specialized companies offering an alternative to ETF-based cryptocurrency investment as the digital currency reaches historic price levels. The debate between treasury firms and ETFs will likely intensify as more institutional investors seek cryptocurrency exposure through traditional market mechanisms.