Jack Mallers’ Twenty One Stock Drops 25%, Trails Peers

Twenty One Shares Drop 25% Amid Bitcoin Treasury Sell-Offs, Market Values Company Solely on Bitcoin Holdings Without Cash Flow Premium

  • Twenty One shares have fallen 25% over the last month, mirroring declines in other Bitcoin treasury companies.
  • Twenty One’s market capitalization matches exactly the value of its bitcoin holdings, with no premium for other business factors.
  • Founder Jack Mallers positions the company as a “Bitcoin-native” business focused on generating cash flow and bitcoin accumulation.
  • The company has yet to report any cash flow in its quarterly earnings despite those claims.
  • Since its public debut, the stock has dropped 80%, and most investors have lost money since the April 23 announcement.

Shares of Jack Mallers’ public company Twenty One, which is supported by the stablecoin issuer Tether, have declined by 25% in the past month. This decline is consistent with similar drops across other bitcoin treasury companies during the same period.

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The stock’s market capitalization currently stands at approximately $3.92 billion, exactly matching the value of its bitcoin holdings—43,514 BTC. This valuation indicates that investors place no additional value on other aspects of the company, such as cash flow, strategic partnerships, or management expertise.

Mallers has stated that Twenty One is not simply a passive bitcoin holding company but a “Bitcoin-native” operating business designed to increase “BTC per share” through multiple business initiatives. Speaking on CNBC, he said, “We’re bringing a lot of BTC products to market with the intent to have cash flow.” However, the firm has yet to report any cash flow in its quarterly earnings.

Over the year, Twenty One’s stock has underperformed the S&P 500 by about 5 percentage points, despite the company’s backing from well-known investors including Tether, Cantor Fitzgerald, and Softbank. Since the deal to take Twenty One public was announced on April 23, the stock price has spent nearly all trading days below its initial peak, falling 80% from that high.

Other bitcoin treasury companies have experienced comparable declines: Michael Saylor’s Strategy and peers like Vivek Ramaswamy’s Strive Asset Management, David Bailey’s Nakamoto, and Adam Back’s H100 Group have fallen between 25% and 36%.

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Despite backing from billionaires such as Softbank’s Masayoshi Son (net worth approximately $38 billion), Tether’s Giancarlo Devasini (about $13 billion), and others, Twenty One has not yet convinced investors to value the company beyond its bitcoin holdings.

On Twitter, Mallers characterized Twenty One as “a Bitcoin-native business backed by Tether & SoftBank, built for cash flow, growth, and bitcoin accumulation.” Yet the company’s financial performance and stock price have yet to reflect these ambitions.

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