Twenty One Capital (XXI) Stock Plummets 20% on NYSE Debut: Jack Mallers’ Firm Stumbles Out of the Gate

Jack Mallers' crypto-adjacent venture, Twenty One Capital, just had a Wall Street welcome it would rather forget. The company's stock—ticker XXI—tanked a brutal 20% on its first day of NYSE trading. Not exactly the moon-shot debut some might have expected from a name linked to Bitcoin's lightning network evangelist.

The Rough Opening Bell

Forget a celebratory ring—the opening bell sounded more like a warning siren. Shares of XXI went into a near-freefall from the jump, shedding a fifth of their value by the closing bell. That's a stark contrast to the typical IPO pomp, where even mediocre companies often manage a first-day pop to save face. This wasn't a dip; it was a dive.

Decoding the 20% Drop

So, what gives? The market's instant verdict suggests a hefty gap between the hype surrounding Mallers' brand and the cold, hard numbers on Twenty One Capital's prospectus. Were investors spooked by the company's core model? Unconvinced by its path to profitability in a volatile sector? The sheer magnitude of the sell-off points to a fundamental reassessment, not just routine profit-taking.

It's a classic Wall Street reality check: a famous founder's name might get you in the door, but it won't stop the floor from falling out if the fundamentals look shaky. Sometimes, the market acts like the most cynical analyst in the room—and it just delivered a scathing, double-digit review.

A Bumpy Start for Crypto's Wall Street Ambitions

This stumble isn't happening in a vacuum. It lands as traditional finance continues its awkward, hesitant dance with the crypto world. A high-profile flop like this—a 20% cratering on day one—gives ammunition to skeptics who view the entire sector as a speculative house of cards. It forces a tougher question: if a venture tied to a prominent crypto figure can't win over NYSE traders, what does that signal for broader adoption?

The road for crypto-native companies seeking mainstream legitimacy was never going to be smooth. Twenty One Capital's debut just added a major pothole. Now, the pressure is on to prove this was a first-day glitch, not the first sign of a breakdown.

TLDR

• Twenty One Capital (XXI) dropped 20% on its first day of trading Tuesday, closing at $11.42 despite Bitcoin rising 3%
• The company holds 43,514 Bitcoin worth over $4 billion, ranking third among public corporate holders
• CEO Jack Mallers stated Twenty One is not just a treasury company and plans to build revenue-generating businesses in brokerage, credit, and lending
• The firm raised $850 million through convertible notes and equity sales, backed by Tether, SoftBank, and Bitfinex
• Shares opened at $10.74, well below Monday’s SPAC closing price of $14.27 for Cantor Equity Partners

Twenty One Capital shares tumbled on their first day of trading Tuesday, closing 20% below the previous day’s merger price. The Bitcoin-focused company opened at $10.74 and finished at $11.42, falling short of the $14.27 closing price for Cantor Equity Partners, the SPAC it merged with.

The stock saw a slight recovery in after-hours trading, climbing 2.2% to $11.67. This gives the company a market value of approximately $4 billion based on outstanding shares.

The debut came as Bitcoin itself climbed roughly 3%, creating a disconnect between the company’s performance and the asset it holds. Twenty One Capital ranks as one of the most anticipated crypto public offerings this year.

The company enters the market with 43,514 bitcoin worth over $4.05 billion. This positions Twenty One as the third-largest public corporate holder of Bitcoin, trailing only MARA Holdings and Strategy.

Tether, Bitfinex, and Japan’s SoftBank Group back the venture. Jack Mallers, founder and CEO of Bitcoin platform Strike, leads the company as CEO.

The SPAC deal brought in roughly $850 million through convertible notes and equity sales. The capital package included earlier Bitcoin contributions from Tether, SoftBank, and Bitfinex worth several billion dollars.

Business Model Under Scrutiny

Twenty One Capital has not publicly detailed its operating business plans or launch timeline. This lack of clarity appears to have spooked some investors on debut day.

BREAKING:Jack Mallers' Twenty One Capital goes live on the NYSE with $4 BILLION Bitcoin on its balance sheet pic.twitter.com/EEvKoKAi9o

— Bitcoin Archive (@BitcoinArchive) December 9, 2025

Mallers told CNBC the company is “not a treasury company” and wants to avoid being priced purely as a treasury asset. He stressed Twenty One is building an operating business with plans to launch Bitcoin products that generate cash flow.

The CEO sees opportunities in brokerage, exchange, credit, and lending. When pressed for specifics, Mallers said the company WOULD reveal these plans “sooner rather than later.”

He drew distinctions between Twenty One and other market players. Mallers noted Coinbase operates as a crypto business rather than Bitcoin-only, while Strategy holds Bitcoin but lacks products or cash flow in the industry.

“We want to live in the intersection of that,” Mallers said. The company aims to combine Bitcoin accumulation with revenue-generating operations.

Market Context and Positioning

The US market has seen multiple crypto treasury companies launch this year. These firms follow a model popularized by Strategy, buying and holding crypto while raising money for additional purchases.

Investor interest in crypto holding companies peaked earlier this year as Bitcoin climbed to October highs. The recent decline in crypto markets has dragged down shares of companies exposed to the sector.

Mallers expressed conviction that his and Tether’s track record will support Twenty One during this period. “We see Bitcoin as the forest through the trees,” he told CNBC.

The CEO positioned Bitcoin as the primary opportunity and stated Twenty One will focus solely on Bitcoin to deliver shareholder value. The company aims to differentiate itself through this singular focus combined with operating businesses.

Shares edged up to $11.80 in post-market trading following the Tuesday debut.