Twenty One Capital stock sinks on debut as investors assess unclear business model
Shares of Twenty One Capital (XXI) fell sharply on their first day of trading, sliding 20% after merging with Cantor Equity Partners’ SPAC.
The stock opened at $10.74, well below Monday’s $14.27 close for the blank-check company it succeeded, reports Cointelegraph.
By Wednesday’s close, XXI had dropped to $11.42, marking a 19.97% decline over 24 hours. After-hours trading offered only a minor rebound to $11.67, implying a market valuation of roughly $4 billion. The debut was highly anticipated, given backing from Tether, Bitfinex, Japan’s SoftBank Group and Strike CEO Jack Mallers, who now leads the company. With more than 43,500 BTC on its balance sheet, XXI immediately became the third-largest corporate Bitcoin holder.
Mallers distances Twenty One from pure treasury model
Despite its sizable Bitcoin holdings, Mallers insisted the company should not be viewed as another crypto treasury vehicle. He told CNBC that Twenty One intends to operate as a full-fledged business rather than simply accumulate BTC. Mallers stated that the company aims to build revenue-generating products across brokerage, exchange, credit and lending rather than rely on Bitcoin appreciation alone.
When pressed for specifics, he avoided confirming launch timelines but said announcements would come “sooner rather than later.” His comments reflect a desire to differentiate XXI from firms using the Strategy-style model of raising capital to buy Bitcoin. Mallers emphasized that Bitcoin remains central to the company’s identity, but not its only source of potential value.
Market downturn challenges new Bitcoin-focused public companies
Twenty One Capital’s shaky debut highlights the broader struggle faced by newly listed crypto-exposed firms. A wave of similar companies entered public markets earlier this year as Bitcoin surged toward record highs, attracting investor enthusiasm.
However, the subsequent downturn has weighed heavily on equities tied to digital-asset performance. Many investors remain wary of businesses whose valuations depend heavily on BTC price movements, particularly when their operating plans are unclear. Mallers acknowledged the difficult environment but argued that long-term conviction in Bitcoin will ultimately support the company’s trajectory. For now, Twenty One Capital must convince markets that its strategy is more than a large Bitcoin balance sheet.
Recently we wrote that shares of Jack Mallers’ Twenty One Capital debuted on the NYSE with a drop, despite strong institutional backing and the third-largest Bitcoin treasury among public companies.
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