Strike CEO Jack Mallers to Lead New Bitcoin Venture Backed by Tether and SoftBank

In a bold move to reshape the financial landscape, Jack Mallers, the visionary behind Strike, is set to lead Twenty One, a new Bitcoin-centric venture backed by industry giants Tether and SoftBank.

• Jack Mallers appointed CEO of Twenty One
• Tether, SoftBank, and Bitfinex back the venture
• Over 42,000 BTC in treasury at launch
• Focus on Bitcoin accumulation and financial product development

Jack Mallers’ New Role

Jack Mallers, known for his groundbreaking work with Strike, a crypto payments firm that leverages the Bitcoin Lightning Network for faster and cheaper transactions, is taking on a new challenge. Mallers, who hails from a family of financial innovators, has been at the forefront of Bitcoin adoption, notably influencing El Salvador’s President Nayib Bukele to adopt Bitcoin as an official currency in 2021. Now, as the CEO of Twenty One, Mallers aims to bring his vision of a Bitcoin-centric financial ecosystem to life, focusing on creating a public stock built by Bitcoiners, for Bitcoiners.

Twenty One’s Ambitious Start

Twenty One launches with a bang, boasting over 42,000 Bitcoin in its arsenal, making it the third-largest Bitcoin treasury globally, only behind Strategy and Mara Holdings. A Bitcoin treasury is essentially a large collection of Bitcoin held as an asset by the company. This ambitious start is fueled by significant investments from industry heavyweights: Tether contributes a whopping $1.5 billion worth of Bitcoin, SoftBank adds $900 million, and Bitfinex chips in with $600 million. These investments underscore the confidence in Mallers’ vision and the potential of Bitcoin as a foundational asset.

The Vision for Bitcoin’s Future

Twenty One’s mission is crystal clear: prioritize Bitcoin accumulation and develop financial products built on Bitcoin. These products will include native lending models and capital market instruments, which are essentially ways for Bitcoiners to borrow, lend, and invest using Bitcoin as the base asset. Think of it as building a Bitcoin Disneyland – a place where everything revolves around the king of crypto. Mallers envisions this venture as the first Bitcoin-native public company, formed through a business combination with Cantor Equity Partners, aiming to maximize Bitcoin ownership per share.

Paolo Ardoino, CEO of Tether, expressed his support for the venture, stating:

“With Jack at the helm, we are proud to support this effort to further Bitcoin’s adoption and reinforce its role as the ultimate store of value.”

Mallers himself is equally passionate about the project, declaring:

“We believe that Bitcoin is the answer, and Twenty One is how we bring that answer to public markets. We’re not here to beat the market, we’re here to build a new one. A public stock, built by Bitcoiners, for Bitcoiners.”

Navigating Challenges

While the optimism surrounding Bitcoin and Twenty One is palpable, let’s not kid ourselves – the crypto world is a wild west. Twenty One will face its fair share of challenges, including regulatory hurdles, market volatility, and the ever-present threat of scams and fraud. To navigate these waters, Twenty One will need a robust strategy. This includes working closely with regulators to ensure compliance, employing risk management practices to mitigate market volatility, and using the latest in blockchain security to safeguard against fraud.

Mallers’ prediction that Bitcoin could reach $1 million if the U.S. government acquires four million BTC is intriguing, but we should take it with a grain of salt. The cryptocurrency market is notoriously unpredictable, and while such a move by the government could indeed boost Bitcoin’s value, it’s far from a guaranteed outcome.

The Broader Impact

The launch of Twenty One is more than just another Bitcoin investment; it’s a significant milestone in the journey towards mainstream Bitcoin adoption. If successful, Twenty One could encourage further institutional investment in Bitcoin and spur the development of more Bitcoin-centric financial products. This could signal a shift towards a financial ecosystem where Bitcoin plays a central role, not just as a speculative asset but as a fundamental building block of finance.

However, we must maintain a balanced perspective. While Bitcoin maximalists might cheer for Twenty One’s focus, we must acknowledge the role of altcoins and other blockchains like Ethereum in filling niches that Bitcoin might not serve well. The crypto space is diverse, and while Bitcoin is the king, it’s not the only player in this revolution.

Key Takeaways and Questions

• Who is leading the new Bitcoin-centric venture Twenty One?

  Jack Mallers, the founder of Strike, is leading Twenty One as its CEO.

• What is the size of Twenty One’s Bitcoin treasury at launch?

  Twenty One will start with over 42,000 Bitcoin in its treasury.

• How much Bitcoin is Tether contributing to Twenty One?

  Tether is contributing $1.5 billion worth of Bitcoin to Twenty One.

• What are the investment contributions from SoftBank and Bitfinex?

  SoftBank is contributing $900 million, and Bitfinex is providing $600 million.

• What is the primary focus of Twenty One?

  Twenty One aims to prioritize Bitcoin accumulation and the development of financial products built on Bitcoin.

• What is Jack Mallers’ vision for Twenty One?

  Mallers envisions Twenty One as a means to bring Bitcoin to public markets and build a new financial market for Bitcoiners.

• How did Jack Mallers influence Bitcoin adoption in El Salvador?

  Mallers influenced President Nayib Bukele to adopt Bitcoin as an official currency in El Salvador in 2021.

• What is the significance of Twenty One’s position in the Bitcoin treasury rankings?

  Twenty One will be the third-largest holder of Bitcoin after Strategy and Mara Holdings.

• What financial products does Twenty One plan to develop?

  Twenty One plans to develop financial products built on Bitcoin, including native lending models and capital market instruments.

• What are the potential risks and challenges Twenty One might face?

  Regulatory hurdles, market volatility, and the risk of scams are major challenges Twenty One must navigate.

• What is the broader impact of Twenty One on the Bitcoin ecosystem?

  Twenty One’s success could encourage further institutional investment in Bitcoin and spur the development of more Bitcoin-centric financial products.