Twenty One Capital, a significant entity in the Bitcoin (BTC) treasury space founded by Jack Mallers, is preparing for a public offering in the United States. In anticipation of its highly awaited debut on December 9, the firm has transferred a considerable amount of 43,500 BTC—valued at around $4.5 billion—into an escrow wallet.
This action has raised market fears regarding a possible sell-off, which could pose substantial selling pressure on the leading cryptocurrency as it strives to maintain its position above the crucial $90,000 support level.
$1.5 Billion Loss In Bitcoin Investments
Notable figures on the social media platform X (formerly Twitter), including OxNobler, have highlighted that the company is currently facing a substantial $1.5 billion loss in its Bitcoin investments.
He cautioned that this financial strain could potentially trigger another downturn for Bitcoin and negatively impact the wider cryptocurrency market.
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The anxiety surrounding this situation is evident in Bitcoin’s recent price movements, as the leading cryptocurrency fell below $90,000 earlier on Monday amid increasing uncertainty about its future direction.
Nonetheless, Jack Mallers had previously explained the rationale behind this significant Bitcoin transfer. He stated that this move is part of the preparations for Twenty One Capital’s upcoming listing on the New York Stock Exchange (NYSE).
As part of this transaction, the company is moving 43,500 BTC from third-party custody to a self-custody account, ensuring transparency by updating its proof of reserves accordingly.
The firm, supported by notable investors like Tether and SoftBank, aims to compete with Michael Saylor’s Bitcoin proxy firm Strategy (formerly MicroStrategy) in the Bitcoin treasury landscape.
A major milestone occurred on December 3, when CEP shareholders approved a merger with Twenty One Capital, setting the stage for the company’s initial public offering (IPO).
Once the transactions are completed, the newly formed entity will operate under the name Twenty One Capital, Inc., with shares anticipated to trade on the NYSE under the ticker symbol “XXI.”
Twenty One Capital Gears Up For IPO
As it prepares for its anticipated US debut, the firm has announced that it will solely concentrate on Bitcoin-related endeavors, providing shareholders with new avenues to gain exposure to BTC through equity markets.
With an operating structure centered on Bitcoin and a long-term value creation strategy, Twenty One aims to position itself as a top platform for capital-efficient Bitcoin accumulation and related business ventures.
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This public offering move comes after a challenging period for Mallers, who revealed that JPMorgan Chase had suddenly closed his accounts in September without any explanation.
“Last month, J.P. Morgan Chase kicked me out of the bank… Whenever I inquired about the reason, I received the same reply: ‘We aren’t allowed to tell you,’” Mallers recounted on November 23. The closure letter cited “concerning activity” and referenced the Bank Secrecy Act, barring him from reopening accounts at the institution.
Featured image from DALL-E, chart from TradingView.com
