Twenty One says it can be “superior” bitcoin vehicle than Strategy
The Tether- and Cantor-backed new company led by Jack Mallers isn’t trying to be a copy of Michael Saylor’s firm.
Many companies are emulating Michael Saylor’s bitcoin accumulation mission at Strategy. One is taking a direct shot at it.
Twenty One, the new bitcoin-native company launched by Tether, SoftBank Group, and Strike CEO Jack Mallers via a merger with Cantor Equity Partners, intends to offer a “potentially superior vehicle for investors seeking capital-efficient bitcoin exposure,” its SEC filing reads, titled “Project Mystery Investor Presentation.”
Twenty One, whose name is a nod to bitcoin’s finite supply of 21 million and will trade on the Nasdaq under ticker symbol XXI, plans to launch with more than 42,000 bitcoin. This would make it the third-largest bitcoin treasury in the world, following Strategy, which holds 538,200 bitcoin, and MARA Holdings, which holds 47,531 bitcoin.
According to a press release, at the closing of the business combination, the company “will be majority-owned by Tether, co-founder of Twenty One and the world’s largest stablecoin issuer, and Bitfinex, with significant minority ownership by SoftBank Group Corp.”
Twenty One’s arguments for being a superior vehicle to Saylor’s bitcoin-holding company, Strategy, include:
Strategy’s sheer size “poses questions about potential diminishing returns as it continues to purchase bitcoin.”
Its simple balance sheet will allow for flexibility in capital raises.
A graphic in the presentation helps show other advantages Twenty One says it has:
Fei Chen, CEO of Intellectia AI, said that Twenty One is deliberately designed as a publicly traded bitcoin-accumulation vehicle with well-capitalized partners including Cantor Fitzgerald.
“This indicates institutional-grade design with transparency and long-term accumulation as a primary mandate — whereas MSTR is more of a leveraged bet on BTC through a business shell,” Chen added.
Another factor that could benefit Twenty One is that it can attract retail and RIAs wanting one-to-one bitcoin exposure in their portfolios who shy away from the tech-company-hinged volatility and debt strategy inherent in Strategy’s model, Chen said.
Meanwhile, TD Securities analysts deemed the launch as “the most-meaningful validation of Strategy’s bitcoin treasury operations to date,” adding that it leaves them bullish on Strategy. TD Securities has assigned a “buy” rating to Strategy, with a $550 price target, representing a 58% premium over today’s price of $348, as of writing.
It “could mark a turning point in institutional investor sentiment around MSTR shares, which despite Strategy’s strong performance has remained largely skeptical,” they wrote. “We continue to model Strategy holding 757k bitcoins by the end of FY27, representing 3.6% of all bitcoin ever to be mined.”
Whether the new entrant will affect the price of bitcoin remains to be seen. The emergence of another large buyer creates competition and increases demand, potentially boosting the price.
“At the same time, the offering here is essentially for retail and institutional investors to buy shares of a stock, instead of buying bitcoin directly,” Two Prime CEO Alexander Blume said. “This means huge purchases don’t actually move the price much in the short term, as you don’t see true price discovery on the open market.”
Meanwhile, Saylor remains unbothered, posting that “the first $100 billion is the hardest.”
