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 long-awaited debut on December 9, the company has moved a significant sum 43,500 BTC— roughly worth $4.5 billion — into an escrow wallet.
The move sparked market concerns about a potential selloff, which could create major selling pressure for the leading cryptocurrency as it tries to consolidate above the key $90,000 support level.
Loss of $1.5 billion in bitcoin investments
Social media platform X (formerly Twitter) experts like OxNobler have pointed out that the company is currently struggling with a significant $1.5 billion loss on its Bitcoin investment.
He warned that this financial pressure could potentially lead to another fall in Bitcoin and adversely affect the broader cryptocurrency market.
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The fear surrounding this situation is reflected in the price movement of Bitcoin, as the leading cryptocurrency fell below $90,000 earlier on Monday amid increasing uncertainty about its future trajectory.
However, Jack Mallers predates that he addressed the reasoning behind this monumental Bitcoin transfer. According to him, this step is part of the preparations for the upcoming listing of Twenty One Capital on the New York Stock Exchange (NYSE).
As part of the transaction, the company transfers 43,500 BTC from third-party custody to a self-custodial account, ensuring transparency by updating proof of reserves accordingly.
The company, backed by major players such as Tether and SoftBank, aims to take on the strategy of Michael Saylor’s Bitcoin proxy firm (formerly MicroStrategy) in the competitive Bitcoin treasury sector.
A significant milestone was reached on December 3, when CEP shareholders approved a business merger with Twenty One Capital, paving the way for the company initial public offering (IPO).
After the transactions are completed, the combined entity will do business as Twenty One Capital, Inc., and its shares are expected to begin trading on the NYSE under the symbol “XXI.”
Twenty One Capital is preparing for an IPO
In the midst of preparations for its anticipated US debut, the company is indicated that it will focus exclusively on Bitcoin-related ventures, offering shareholders new opportunities to gain exposure to BTC through the equity markets.
With an operating framework native to Bitcoin and a long-term strategy designed to create value, Twenty One intends to establish itself as the leading platform for capital-efficient Bitcoin accumulation and related business initiatives.
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The move to go public follows a tumultuous period for Mallers, who has exposed that JPMorgan Chase abruptly closed his accounts in September without explanation.
“Last month, JP Morgan Chase kicked me out of the bank… Whenever I asked them why, I got the same answer: ‘We’re not allowed to tell you,'” Mallers recounted on November 23. The closing letter cited “concerning activity” and invoked the Bank Secrecy Act, preventing him from reopening bank accounts.
Featured image from DALL-E, chart from TradingView.com
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