Twenty One Capital, a major player in the Bitcoin (BTC) treasury sector founded by Jack Mallers, is on the verge of going public in the United States. However, ahead of its highly anticipated debut on December 9, the company has moved a substantial sum of 43,500 BTC—approximately worth $4.5 billion—into an escrow wallet. 

This move has sparked market concerns about a potential sell-off, which could create major selling pressure for the leading cryptocurrency as it attempts to consolidate above the key $90,000 support level.  

$1.5 Billion Loss In Bitcoin Investments

Experts on the social media platform X (formerly Twitter), such as OxNobler, have pointed out that the company is currently grappling with a significant $1.5 billion loss on its Bitcoin investment. 

He warned that this financial pressure could potentially lead to a new crash for Bitcoin and adversely affect the broader cryptocurrency market as well. 

The apprehension surrounding this situation is reflected in Bitcoin’s price action, as the leading cryptocurrency dipped below $90,000 earlier on Monday amid growing uncertainty about its future trajectory.

However, Jack Mallers had previously addressed the reasoning behind this monumental Bitcoin transfer. According to him, this step is part of the preparations for Twenty One Capital’s upcoming listing on the New York Stock Exchange (NYSE). 

As part of the transaction, the company is transitioning 43,500 BTC from third-party custody to a self-custody account, ensuring transparency by updating its proof of reserves accordingly.

The firm, backed by major players like Tether and SoftBank, aims to take on Michael Saylor’s Bitcoin proxy firm Strategy (previously MicroStrategy) in the competitive Bitcoin treasury sector. 

A significant milestone was reached on December 3, when shareholders of CEP approved a business merger with Twenty One Capital, paving the way for the company’s initial public offering (IPO).

Once the transactions are finalized, the combined entity will operate as Twenty One Capital, Inc., with its shares expected to begin trading on the NYSE under the ticker symbol “XXI.” 

Twenty One Capital Gears Up For IPO

Amid the preparations for its anticipated debut in the US, the firm has indicated that it will focus exclusively on Bitcoin-related ventures, offering shareholders new opportunities to gain exposure to BTC through equity markets. 

With a Bitcoin-native operating framework and a long-term strategy designed for value creation, Twenty One intends to establish itself as a leading platform for capital-efficient Bitcoin accumulation and related business initiatives.

This move to go public follows a tumultuous period for Mallers, who disclosed that JPMorgan Chase had abruptly closed his accounts in September without explanation. 

“Last month, J.P. Morgan Chase threw me out of the bank… Whenever I asked them why, I received the same response: ‘We aren’t allowed to tell you,’” Mallers recounted on November 23. The closure letter cited “concerning activity” and referenced the Bank Secrecy Act, preventing him from reopening accounts at the bank.

Featured image from DALL-E, chart from TradingView.com