Twenty One Capital’s NYSE Debut: A Stumble Amidst Bitcoin’s Rise

Twenty One Capital (XXI), the highly anticipated Bitcoin reserve company spearheaded by Strike founder Jack Mallers and backed by crypto giant Tether, experienced a challenging entry into the New York Stock Exchange (NYSE). Despite a modest 3% uptick in Bitcoin’s value on Tuesday, XXI’s shares plunged almost 20% on their inaugural trading day, signaling a cautious market reception.

The company, which emerged from a merger with Cantor Equity Partners, a special purpose acquisition company (SPAC) under the venerable Cantor Fitzgerald, commenced trading on Tuesday under the ticker ‘XXI’. Opening at $10.74, the stock managed a slight recovery to close at $11.42. However, this represented a significant 19.97% decline from Cantor Equity Partners’ closing price of $14.27 the previous day, underscoring the initial investor apprehension.

While after-hours trading saw a marginal rebound to $11.80, Twenty One’s rocky debut undeniably highlights persistent market skepticism surrounding the valuation metrics and long-term viability of companies primarily focused on Bitcoin reserves.

The journey to this public listing was extensive, spanning several months of meticulous preparation and benefiting from the robust backing of the Cantor Fitzgerald Group. Crucially, the deal saw significant Bitcoin capital injections from influential investors, including Tether and SoftBank, signaling strong institutional confidence in the company’s underlying assets.

Indeed, Twenty One boasts an impressive portfolio of 43,514 Bitcoins, currently valued at over $4.05 billion. This substantial holding positions the company as the third-largest publicly listed entity globally by Bitcoin reserves, a testament to its foundational strength in the digital asset space.

Despite the initial market jitters, CEO Jack Mallers remains steadfast in his ambitious vision for Twenty One. He affirmed that while the company will continue its strategic accumulation of Bitcoin, its core focus extends far beyond mere holding. Mallers articulated a clear strategy to cultivate revenue-generating “Bitcoin-native businesses,” aiming to innovate across key financial sectors such as brokerage, credit services, and lending. This ambitious strategy positions Twenty One not merely as a holder of digital assets, but as a key player in shaping the future of Bitcoin-centric finance, even as it navigates the volatile currents of public market sentiment.