Jack Mallers Is Joining as CEO of the New Crypto Venture Twenty One Capital

Jack Mallers is joining as CEO of the new crypto venture Twenty One Capital, majority-owned by stablecoin issuer Tether, according to an announcement

Jack Mallers, the CEO of Strike and a prominent figure in the crypto sphere, is set to take on a new leadership role as the head of Twenty One Capital, a new crypto venture backed by several major investors, including stablecoin issuer Tether and global financial institutions SoftBank Group and Cantor Fitzgerald.

The company, which will launch with $3.6 billion worth of bitcoin (BTC) in its treasury, is going public through a blank-check merger with the Cantor Equity Partners SPAC vehicle (NYSE: CEP). It plans to add to its already sizable bitcoin stash, offering institutional investors a more traditional avenue to gain exposure to the asset.

Twenty One will be majority-owned by Tether and its sister crypto exchange Bitfinex, with SoftBank joining as a minority stakeholder.

At launch, Twenty One will launch with 42,134 bitcoins in its treasury, making it the third-largest BTC treasury held by publicly-traded firms, according to data. However, many private firms and governments hold multiple more bitcoins, according to Bitcoin Treasuries.

The company will also have around $1 billion in cash at launch, which will be used to fund future investments and initiatives.

According to a statement announcing the partnership, Cantor will be a key driver of Twenty One’s growth, providing its expertise in capital markets and financial products to help the company realize its full potential.

As part of the merger agreement, which is still subject to regulatory approval, Cantor Equity Partners SPAC will change its name to Twenty One Capital and its common stock and warrants will trade on the New York Stock Exchange under the ticker symbols “TWTY” and “TWTY.W,” respectively.

In addition to its main listing on the NYSE, Twenty One’s stock will also be listed for trading on the FTX exchange in the Bahamas.

Earlier this year, rumors began circulating that several institutions were planning to band together to launch a crypto SPAC. In February, reports emerged that a new venture capital firm was being established with the aim of investing in promising startups in the fields of artificial intelligence, biopharmaceuticals, deeptech, and Web3.

The new SPAC vehicle, which is being spearheaded by Cantor Fitzgerald and is valued at $800 million, is expected to play a crucial role in facilitating the integration of crypto firms into the U.S. capital markets.

As part of the merger agreement, which is still subject to regulatory approval, Cantor Equity Partners SPAC will change its name to Twenty One Capital and its common stock and warrants will trade on the New York Stock Exchange under the ticker symbols “TWTY” and “TWTY.W,” respectively.

Those interested in learning more about the venture can visit Twenty One Capital’s official website for additional information.

Who is Jack Mallers?

Born in Chicago, Mallers is an entrepreneur and Bitcoin advocate. In 2020, he founded Strike, the payments app built on the Bitcoin Lightning Network with the aim of making BTC a global payment and savings tool. In addition to leading Twenty One, Mallers intends to continue his role at Strike.

“With Jack at the helm, we are proud to support this effort to further Bitcoin’s adoption and reinforce its role as the ultimate store of value,” Paolo Ardoino, CEO of Tether, said in a statement. “Twenty One will take a Bitcoin-first approach that aligns with our vision—prioritizing accumulation over speculation and building long-term value for those who understand what Bitcoin represents.”

Mallers entered the world stage in 2021 as the man who “Orange Pilled” the President of El Salvador. That year, Bukele announced at the Bitcoin Conference in Miami that El Salvador would become the first country to make bitcoin an official state currency alongside its use of the U.S. dollar.

According to a report by The Block, which cites the Financial Times, Tether will be contributing $1.5 billion worth of bitcoin to Twenty One, SoftBank will add $900 million in bitcoin, and Bitfinex plans to supply $600 million of the cryptocurrency.

The firms’ bitcoin investments will eventually be converted into equity at a $10 per share valuation. Additionally it plans to offer a $585 million capital raise, including a $350 million convertible bond sale and a $200 million private equity placement.

“Twenty One is structured to be a day one Bitcoin-native company that will strategically allocate capital to increase Bitcoin per share,” the company notes. The firm also plans on “supporting financial products built with and on Bitcoin,” including lending models, capital market instruments “and future innovations that will replace legacy financial institutions with Bitcoin-aligned alternatives,” in addition to publishing Bitcoin content.