Twenty One Capital, a major player in the Bitcoin (BTC) treasury sector founded by Jack Mallers, is about to go public in the United States. However, ahead of the highly anticipated debut on December 9, the company has moved a significant amount of money 43,500 BTC– worth approximately $4.5 billion – in a blocked wallet.
This move has raised concerns in the market about a possible sell-off, which could cause major selling pressure for the leading cryptocurrency as it tries to consolidate above the key USD 90,000 support level.
$1.5 billion loss in Bitcoin investments
Experts on the social media platform X (formerly Twitter), such as OxNobler, have done so pointed out that the company is currently struggling with a significant $1.5 billion loss on its Bitcoin investment.
He warned that these financial pressures could potentially lead to another crash for Bitcoin and also negatively impact the broader cryptocurrency market.
Related reading
The concern surrounding this situation is reflected in Bitcoin’s price action, as the leading cryptocurrency fell below $90,000 earlier on Monday amid growing uncertainty about its future trajectory.
However, Jack Mallers had done that before addressed the reasoning behind this monumental Bitcoin transfer. According to him, this move is part of preparations for Twenty One Capital’s upcoming listing on the New York Stock Exchange (NYSE).
As part of the transaction, the company will transfer 43,500 BTC from escrow to its own account, ensuring transparency by updating proof of reserves accordingly.
The company, backed by major players such as Tether and SoftBank, wants to acquire Michael Saylor’s Bitcoin proxy firm Strategy (formerly MicroStrategy) in the competitive Bitcoin treasury sector.
A major milestone was reached on December 3, when CEP shareholders approved a corporate merger with Twenty One Capital, paving the way for the company’s acquisition. IPO (IPO).
Once the transactions are completed, the combined entity will operate as Twenty One Capital, Inc., with its shares expected to trade on the NYSE under the ticker symbol “XXI.”
Twenty One Capital is preparing for an IPO
Amid preparations for its anticipated US debut, the company has done just that indicated that it will focus exclusively on Bitcoin-related businesses, offering shareholders new opportunities to gain exposure to BTC through the stock markets.
With a Bitcoin-native operating framework and a long-term strategy designed for value creation, Twenty One aims to establish itself as a leading platform for capital-efficient Bitcoin accumulation and related business initiatives.
Related reading
This move to go public follows a tumultuous period for Mallers revealed that JPMorgan Chase had closed its accounts abruptly and without explanation in September.
“Last month, JP Morgan Chase threw me off the bank… Whenever I asked them why, I got the same answer: ‘We’re not allowed to tell you,’” Mallers said on November 23. The closing letter cited “concerning activity” and referenced the Bank Secrecy Act, which prevented him from reopening accounts at the bank.
Featured image of DALL-E, chart from TradingView.com