- Jack Mallers will lead Twenty One, a new Bitcoin-focused company backed by Tether and Bitfinex that aims to compete with MicroStrategy.
- While promoting a Bitcoin-only ethos, Mallers has a history of using stablecoins like USDT for core business operations at Strike.
- Twenty One is currently valued at approximately $9.4 billion, about one-tenth the market cap of competitor MicroStrategy ($94 billion).
Jack Mallers has been appointed CEO of Twenty One, a new cryptocurrency venture backed by stablecoin giant Tether and its sister exchange Bitfinex. The company aims to compete with MicroStrategy by leveraging billions in bitcoin (BTC) through capital markets. Mallers, who previously worked in the marijuana industry before operating Tether-backed applications, will lead this ambitious initiative while continuing to serve as CEO of payments app Strike.
Twenty One plans to use bond offerings and various financial services to grow its bitcoin holdings "on an accretive basis" over time. During recent television appearances, Mallers emphasized that shareholders of Cantor Equity Partners (CEP), which will eventually trade under ticker symbol XXI, can expect increasing wealth in BTC terms despite taking on additional debt. This strategy mirrors the approach used by MicroStrategy Chairman Michael Saylor, who promotes BTC yield through a similar model.
The publicly-traded CEP, which reportedly will own 2.7% of the combined equity in Twenty One, closed trading Thursday with a $255 million market cap. This valuation implies a total worth of $9.4 billion for Twenty One, significantly smaller than MicroStrategy’s $94 billion closing market cap.
Strike’s Development Under Mallers’ Leadership
Despite promoting a Bitcoin-only philosophy, Mallers’ payment app Strike initially utilized Tether’s USDT stablecoin during its startup phase. Under his leadership, Strike has expanded to offer bitcoin remittances to numerous countries, integrated with Twitter for tips, and provided peer-to-peer payment services in Argentina.
Strike announced in 2022 that it would integrate with Shopify, NCR’s point-of-sale terminals, and Blackhawk Network, promising consumers could use Strike to make BTC purchases at major fast-food chains—promises that critics note never materialized. The company later launched a Strike-branded VISA card and expanded into African markets, eventually reaching 65 countries by May 2023.
Tether Connections and Future Plans
Mallers’ relationship with Tether spans years, including close involvement with El salvador‘s bitcoin initiatives. He famously announced President Nayib Bukele’s plan to make BTC legal tender in 2021 (since rescinded) and relocated Strike’s headquarters to El Salvador in 2023, where Tether also maintains its global headquarters.
More recently, Mallers delivered a keynote address at the Bitcoin for America conference about a Strategic Bitcoin Reserve, describing BTC as "a return to traditional values." This concept gained official recognition when Donald Trump established a Strategic Bitcoin Reserve through executive order on March 6, 2025.
With Twenty One’s launch, Mallers continues his pattern of bitcoin-focused ventures supported by Tether’s ecosystem, now aiming to challenge MicroStrategy’s dominance in the corporate bitcoin accumulation space.
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