Twenty One Capital Plans to Build Bitcoin-Native Public Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2026
0mins
The company said, "Twenty One Capital (XXI) is building a Bitcoin-native public company designed to give investors differentiated exposure to Bitcoin. XXI's strategy is to bring together Bitcoin treasury, financial services, mining, and capital markets into a single operating platform focused on recurring revenue, capital-efficient Bitcoin accumulation, and long-term value creation. Tether International, XXI's controlling shareholder, announced that it has acquired SoftBank Group's (SFTBY) stake in XXI, further aligning the company's shareholder base to advance its long-term Bitcoin strategy. At the closing of the transaction, SoftBank Group's representatives on the XXI Board of Directors stepped down in accordance with XXI's shareholder agreement...With Tether's deepened commitment, Twenty One enters its next phase with strong shareholder alignment and a clearer path to advance the operating vision it was created to pursue. Twenty One remains focused on becoming the premier listed Bitcoin company in the world: a public company that moves beyond treasury exposure alone by combining Bitcoin treasury, financial services, mining, lending, capital markets, and strategic consolidation into one integrated platform. The Company believes this approach can create a new model for Bitcoin-native public companies, with operating businesses and recurring revenue opportunities designed around long-term Bitcoin accumulation as the central objective."
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Analyst Views on XXI
About XXI
Twenty One Capital, Inc. is a Bitcoin-native company. The Company is focused on Bitcoin-related business lines that, among other things, offer shareholders a differentiated opportunity to gain exposure to Bitcoin through the equity markets. The Company intends to become a vehicle for Bitcoin accumulation and related business development. It is engaged in two principal activities: actively accumulating Bitcoin and managing its Bitcoin holdings and commencing development of educational materials and branded content intended to drive increased institutional and retail investor Bitcoin literacy. In addition, following these initial activities, it expects to engage in Bitcoin-centric financial services that would leverage its Bitcoin expertise to provide solutions tailored for institutions and individuals investing in, holding, and utilizing Bitcoin.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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- Acquisition of Control: Tether International announced the buyout of SoftBank's entire stake in Twenty One Capital (XXI), marking a significant consolidation of control that is expected to enhance the company's strategic position in the Bitcoin market.
- Board Restructuring: As required by the shareholder agreement, SoftBank's representatives on the XXI Board have resigned, allowing Tether to exert more direct influence over the company's decision-making and future direction.
- Positive Market Reaction: Following Tether's announcement, XXI's stock price rose over 2% in pre-market trading, reaching $8.07, indicating a positive market response and reflecting investor confidence in the company's future.
- Retail Sentiment Shift: On Stocktwits, retail sentiment around XXI shifted from 'neutral' to 'bullish', suggesting an increasing optimism among investors regarding the company's prospects, which may attract more investor attention.
See More
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- Funding Expectations: Securitize anticipates raising approximately $400 million through its merger with Cantor Equity Partners II, reflecting strong market confidence in its tokenization platform, especially as fewer than 30% of SPAC shareholders opted to redeem, leaving 71.5% of the trust intact.
- Tokenization Market Leader: As the largest real-world asset tokenization platform, Securitize manages over $4 billion in assets and serves as the tokenization platform for BlackRock's BUIDL fund, marking a significant milestone in the mainstream adoption of tokenization in institutional investing.
- Expansion of Cantor's Crypto Transactions: This transaction further solidifies Cantor Fitzgerald's role as a pipeline for crypto-linked companies entering public markets, showcasing its enduring influence over the past four decades, particularly after Howard Lutnick stepped down and control shifted to his sons.
- Shareholder Vote and Market Reaction: CEPT shareholders are scheduled to vote on the merger on June 29, with the deal expected to close on July 1, and CEPT's stock rose over 7% last Friday, indicating optimistic market sentiment, as retail investor sentiment shifted from neutral to bullish.
See More
Michael Saylor Calls for Bitcoin Unity Amid Treasury Debate
- Call for Bitcoin Unity: Michael Saylor urged Bitcoin advocates to focus on the '99% that matters' on social media, emphasizing that global capital has yet to fully enter Bitcoin's network, indicating significant market potential despite ongoing internal debates.
- STRC Stock Pressure: Strategy Inc's STRC preferred shares fell to $88, below the $100 par value, forcing the company to pause at-the-market sales, highlighting the pressure on its financing tools that may impact future funding strategies.
- Perpetual Preferred Equity Debate: Jack Mallers of Twenty One Capital argued that companies issuing perpetual preferred equity are effectively 'signing up to owe money forever,' which could lead to liquidity issues and affect long-term financial health.
- Market Sentiment Analysis: Despite MSTR stock closing down over 3%, retail sentiment on Stocktwits remains in the 'bullish' zone, indicating that investor confidence in the company's future persists, even amid challenges.
See More
Mallers Critiques Perpetual Preferred Equity Model
- Perpetual Preferred Risk: Twenty One Capital CEO Jack Mallers stated that companies issuing perpetual preferred equity are essentially 'signing up to owe money forever', contrasting this with convertible bonds that can be retired through equity conversion, thereby alleviating financial burdens.
- Capital Structure Impact: Mallers emphasized that new perpetual preferreds like the Variable Rate Series A Perpetual Stretch Preferred Stock are non-callable and do not convert to equity, meaning companies will bear an interest burden of approximately 11.5% indefinitely, which could negatively impact their capital structure in the long term.
- Financial Engineering Challenges: Mallers outlined four options for Bitcoin treasury businesses facing underwater positions: selling Bitcoin, issuing dilutive common stock, discontinuing preferred dividends, or finding alternative cash flows to fund perpetual coupons, noting that each option adversely affects at least one stakeholder group.
- Cash Flow Alternatives: Mallers expressed a preference for generating cash flow through Strike's Bitcoin-backed loan business, which has a current addressable market of $20 billion to $30 billion and a long-term potential of $1 trillion to $2 trillion, indicating a strategic exploration of new business models.
See More
Strategy's Bitcoin Treasury Model Faces Pressure Amid Market Downturn
- Stock Price Plunge: Strategy's stock experienced a 24% drop in a week amid a crypto sell-off, marking its worst performance since November 2022, indicating the vulnerability of its bitcoin treasury model under sustained pressure, which could impact its ability to attract new capital.
- Market Reaction: Bitcoin has fallen 50% since its peak in October, with predictions of a drop to $40,000, and Strategy's stock performance reflects not only bitcoin's price but also challenges in maintaining its valuation premium, leading investors to adopt a cautious outlook on its future.
- Increased Industry Competition: Since 2024, numerous bitcoin treasury companies have emerged mimicking Strategy's model, making Strategy not only the largest bitcoin holder but also a template for the industry, complicating its competitive position in the market.
- Shift in Financing Strategy: Strategy has evolved from being a mere bitcoin hoarder to a more active manager, planning to sell bitcoin when advantageous, demonstrating its ability to adapt to market volatility and potentially create long-term value for shareholders.
See More
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- Board Independence Restored: Twenty One Capital has appointed Paul S. Lalljie as an independent director and audit committee member, ensuring compliance with SEC and NYSE independence requirements, thereby enhancing corporate governance and boosting investor confidence.
- Rich Management Experience: Lalljie brings extensive expertise in finance, technology, and education technology, having served as CEO and CFO of 2U, which is expected to provide strategic financial management and audit leadership to support the company's future growth.
- Governance Structure Adjustment: This appointment addresses the vacancy left by SoftBank representatives on the board, ensuring the integrity of the audit committee and reflecting the company's commitment to transparency and compliance, which is crucial for building market trust.
- Bitcoin Strategy Focus: Twenty One Capital holds over 43,500 bitcoins and aims to integrate Bitcoin treasury, financial services, mining, and capital markets into a single platform designed for long-term Bitcoin accumulation and sustainable revenue, enhancing its competitive position in the market.
See More
Tether Acquires SoftBank's Stake in XXI, Strengthening Control
- Acquisition of Control: Tether International announced the buyout of SoftBank's entire stake in Twenty One Capital (XXI), marking a significant consolidation of control that is expected to enhance the company's strategic position in the Bitcoin market.
- Board Restructuring: As required by the shareholder agreement, SoftBank's representatives on the XXI Board have resigned, allowing Tether to exert more direct influence over the company's decision-making and future direction.
- Positive Market Reaction: Following Tether's announcement, XXI's stock price rose over 2% in pre-market trading, reaching $8.07, indicating a positive market response and reflecting investor confidence in the company's future.
- Retail Sentiment Shift: On Stocktwits, retail sentiment around XXI shifted from 'neutral' to 'bullish', suggesting an increasing optimism among investors regarding the company's prospects, which may attract more investor attention.
See More
