New Bitcoin-Focused Public Company Faces Investor Skepticism Over Undefined Business Model
Twenty One Capital, one of the most anticipated crypto-linked public listings of the year, saw its shares drop nearly 20% on the first day of trading following its merger with Cantor Equity Partners’ SPAC. The company opened at $10.74 slipping below the SPAC’s previous closing price and ended its debut session at $11.42, before inching up slightly in after hours trading.
The firm enters the market with more than 43,500 Bitcoin, valued at over $4 billion, placing it among the largest corporate Bitcoin holders globally. Backed by major players including Tether, Bitfinex and Japan’s SoftBank Group, the company is led by Strike founder Jack Mallers, who now serves as CEO.
Yet the market reaction has been dominated by uncertainty. Twenty One Capital has not shared a clear operational roadmap, prompting concerns about how it plans to generate revenue beyond its massive Bitcoin reserves. Mallers has emphasized that the firm is “not a treasury company,” stating that its long-term goal is to build an operating business offering Bitcoin-related products.
During interviews, Mallers highlighted opportunities in brokerage, exchange services, credit and lending, though he refrained from detailing timelines or launch specifics. The absence of a defined business plan, combined with recent volatility in the crypto sector, has contributed to investor caution.
The US market has recently experienced a surge in Bitcoin-heavy companies modeled on large-scale digital asset accumulation. However, declining crypto prices have weighed on these firms’ share performance. Mallers remains confident that Bitcoin-focused strategy will ultimately drive shareholder value, reaffirming his belief that Bitcoin represents the core growth opportunity in the evolving financial landscape.
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