As Bitcoin (BTC) surpasses the $120,000 milestone for the first time, Wall Street’s interest in innovative ways to invest in the leading cryptocurrency is rapidly growing. One of the latest developments is the emergence of publicly traded companies that hold Bitcoin in their treasuries, offering a new avenue for traditional investors.
New Wave Of Bitcoin Treasury Companies
Jack Mallers, CEO of the newly formed Bitcoin treasury company Twenty-One Capital, recently shared insights on this trend during the inaugural episode of Fortune’s vodcast, “Crypto Playbook.”
Mallers argues that investing in companies dedicated solely to accumulating Bitcoin presents a superior alternative for those looking to gain exposure to this booming asset class.
This strategy was pioneered by Michael Saylor’s tech firm, Strategy (previously MicroStrategy), which has become a model for other companies seeking to leverage their balance sheets to buy Bitcoin.
Twenty-One Capital, supported by stablecoin giant Tether and tech investment powerhouse Softbank, is among the latest firms to adopt this approach. Mallers, who is also known for founding the Bitcoin payment platform Strike and advocating for global adoption in nations like El Salvador, emphasized the unique position of Twenty-One.
“What distinguishes us from an exchange-traded fund (ETF) is that we are an operational company focused on becoming a leading Bitcoin business,” Mallers explained.
He outlined the company’s mission to increase what he calls “BTC per share,” aiming to provide an accessible entry point for investors into the crypto market without the complexities associated with exchanges or self-custody solutions. “We recognized the need for a vehicle that simplifies access to Bitcoin, making it more useful to the world,” he added.
Competition Heats Up
Looking ahead, Twenty-One Capital is preparing to go public after agreeing to merge with Cantor Equity Partners, a special-purpose acquisition company linked to Cantor Fitzgerald, the financial institution previously led by US Commerce Secretary Howard Lutnick.
The merger is reportedly poised to make Twenty-One a significant player in the BTC treasury space, with Cantor Fitzgerald serving as the primary custodian for the reserves backing Tether, which will hold a majority stake in the new venture.
However, as the Bitcoin treasury strategy gains traction, competition is becoming increasingly fierce. According to CoinGecko data, Strategy remains the top public company holding BTC with over 576,000 coins. The firm is followed by mining companies Marathon Digital and Riot Platforms.
Yet, Mallers maintains that Twenty-One’s focused business model and experienced founding team signify the dawn of a new era for cryptocurrency investments. “We’ve seen significant interest from Wall Street in Bitcoin, and we’re excited to be at the forefront of this movement,” he stated.
At the time of writing, BTC trades at $118,331 after reaching a new all-time high beyond $123,000 this past Monday.
Featured image from DALL-E, chart from TradingView.com
