Shares of Twenty One Capital (XXI) fell nearly 20% on Tuesday in one of the most anticipated crypto-related debuts of the year. The drop came just hours after the company completed its merger with Cantor Equity Partners, a blank-check firm sponsored by Cantor Fitzgerald. The decline reflected broader investor caution toward cryptocurrency-linked businesses amid a weakening digital asset market.
Sharp drop follows high expectations
Twenty One Capital opened trading on the New York Stock Exchange at $10.74, below the $14.27 closing price of Cantor’s shares on Monday. The stock ended the day at $11.42, down 19.97% from its pre-merger value. After-hours trading saw a slight lift of 2.2% to $11.67, giving the company a market capitalization of roughly $4 billion.
The newly public company trades under the ticker “XXI.” It is majority-owned by Tether, the world’s largest stablecoin issuer, and Bitfinex, a major global crypto exchange. Japan’s SoftBank Group holds a minority stake. Twenty One was formed through the merger announced in April between Cantor Equity and the crypto treasury firm.
Jack Mallers, founder of Bitcoin payments platform Strike, serves as the company’s CEO. He outlined a vision for Twenty One that goes beyond traditional digital asset management. In an interview with CNBC, he said the company would pursue broader commercial activities related to Bitcoin.
“We don’t want the market to think of us and price us as just a treasury asset,” Mallers said. “We do have a lot of Bitcoin, but we’re also building a business.”
Third-largest corporate Bitcoin holder
According to data from BitcoinTreasuries.NET, Twenty One holds more than 43,500 Bitcoin, worth over $3.97 billion based on the latest price of $91,350.84. That figure makes it the world’s third-largest corporate holder of Bitcoin, trailing only major mining company MARA Holdings and software firm MicroStrategy.
Mallers said the company would take an active approach to its Bitcoin strategy.
“Yes, we own a lot of bitcoin. Yes, we're going to acquire as much as we possibly can, but we're also about to launch a ton of business lines and produce profit that's related to bitcoin,” he told Reuters.
He said the company aims to introduce new products, including financing, credit, exchange, and brokerage offerings.
Market challenges weigh heavily
Twenty One’s debut came during a downturn in the cryptocurrency market. Bitcoin has fallen more than 28% since reaching its record high of $126,223.18 in early October. The pullback has pressured so-called “digital asset treasury” (DAT) companies, firms that hold cryptocurrencies on their balance sheets and raise funds to expand those holdings.
“It’s becoming harder for DATs to raise capital and we are in an environment now where DATs need to show material differentiation to warrant the mNAV multiples they were trading at earlier in 2025,” said John Todaro, senior research analyst at Needham.
The “mNAV” metric refers to a company’s enterprise value relative to its crypto holdings, which investors use to assess whether its market price accurately reflects its asset base.
Analysts said that Twenty One’s steep first-day loss underscored growing investor skepticism about firms heavily tied to volatile crypto assets without clear operational strategies.
SPAC background and shifting sentiment
Twenty One went public through its merger with Cantor Equity Partners, a special purpose acquisition company chaired by Brandon Lutnick, the son of U.S. Secretary of Commerce Howard Lutnick. Cantor Equity’s own shares surged as much as 380% earlier this year before paring gains to just 3.9% year-to-date.
SPAC mergers have provided alternative paths for private companies to go public, bypassing traditional IPO procedures. However, many SPAC-linked crypto firms have struggled amid the sector’s volatility.
Focus on Bitcoin, despite volatility
Mallers has remained confident in the company’s long-term focus. Speaking with CNBC, he said,
“We see Bitcoin as the forest through the trees. It is the opportunity, and no one is seemingly focused on it. The story of this equity is to focus solely on Bitcoin and deliver value to shareholders primarily through Bitcoin.”
The company’s large Bitcoin reserve positions it as a significant player within the emerging category of corporate digital asset holders. Yet, the first day of trading highlighted the high expectations and equally high risks facing firms in the sector.
As Twenty One Capital seeks to develop profitable Bitcoin-linked services, it enters public markets at a time when investors appear less patient with companies that rely primarily on cryptocurrency exposure for valuation. The coming months will determine whether Twenty One can transform its large Bitcoin position into sustainable business growth.
Oleksii Shumak
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
