Tether-Backed Twenty One Capital Slumps on Trading Debut Despite Bitcoin Rally

Bitcoin treasury firm Twenty One Capital experienced a steep decline on its first day of trading despite Bitcoin gaining around 3%. The company, listed under the ticker XXI, opened at US$10.74 (AU$16.53) and closed at US$11.42 (AU$17.58), nearly 20% below the US$14.27 (AU$21.96) closing price of the Cantor Equity Partners SPAC it merged with. In post-market trading, the stock edged up to US$11.80 (AU$18.17).

The listing followed a months-long effort to take Twenty One public via a SPAC backed by Cantor Fitzgerald, with Tether and SoftBank providing Bitcoin as part of the merger. At market entry, the company held 43,514 BTC, valued at more than US$4.05 billion (AU$6.24 billion), ranking it as the third-largest publicly traded corporate holder of the cryptocurrency.

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Expanding Beyond Bitcoin Accumulation

CEO Jack Mallers emphasised that, unlike other firms focused solely on Bitcoin accumulation, Twenty One aims to develop revenue-generating services in brokerage, credit, and lending alongside holding Bitcoin. “We look at a Coinbase and don’t think they’re a Bitcoin business. They’re a crypto business. We look at Strategy that’s focused on Bitcoin but doesn’t have products or cash flow in the industry,” Mallers said.

The SPAC deal raised approximately US$850 million (AU$1.31 billion) through convertible notes and equity sales, complementing prior Bitcoin contributions from Tether, SoftBank, and Bitfinex. Analysts note that Twenty One’s decline reflects a broader trend among Bitcoin treasury companies, which have faced sharp corrections following SPAC listings, with similar vehicles seeing losses of 25–60% soon after market debut.

Despite the initial drop, the firm remains strategically positioned with a substantial Bitcoin reserve and a focus on building utility-focused business lines connected to the digital asset ecosystem. Its holdings, currently valued above US$3.97 billion (AU$6.11 billion), highlight the growing role of digital asset treasuries in corporate investment strategies.

Related: Coinbase Reopens Its Doors in India After Two-Year Pause, Begins Careful Market Reentry

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