Tether, SoftBank, and Twenty-One Challenge Saylor? Mallers Explains
Backed by Tether and SoftBank, Jack Mallers launches a Bitcoin-native firm aiming to build, not just buy. With 42K BTC, is this a rival to Saylor’s MicroStrategy?
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Michael Saylor established the prevailing corporate Bitcoin strategy:
- aggressive accumulation,
- balance sheet holding,
- public advocacy.
However, a new contender has emerged, aiming for a different approach—building a business fundamentally intertwined with the Bitcoin network itself, rather than simply holding the asset.
That contender is Twenty-One, a newly launched Bitcoin-native public firm led by Jack Mallers, co-founded with Tether, and backed by SoftBank Group. At launch, it expects to hold more than 42,000 BTC, making it the third-largest Bitcoin treasury in the world. But according to Mallers, the real story isn’t the headline number—it’s what they plan to do with it.
We’re not here to beat the market. We’re here to build a new one,
Mallers declares.
Bitcoin, Not Balance Sheets
In a recent interview, Mallers differentiated Twenty-One from MicroStrategy, whose strategy centers on Bitcoin accumulation via corporate reserves and debt. In contrast, Twenty-One intends to function as a dedicated Bitcoin-native enterprise, leveraging capital markets not merely for asset acquisition but to generate revenue streams intrinsically linked to the Bitcoin network.
We want to be the ultimate vehicle for the capital markets to participate in Bitcoin. That’s not just raising accretive Bitcoin-denominated capital. It’s building Bitcoin-native business lines and models,
Mallers explained.
The goal is to grow what Mallers calls Bitcoin Per Share (BPS)—a new metric introduced alongside Bitcoin Return Rate (BRR), measuring how much BTC backs each share and how quickly that share of BTC is growing over time. In other words, performance isn’t measured in dollars. It’s measured in satoshis.
This is more than a slogan. Twenty-One plans to operate as an active business:
- launching products,
- acquiring partners,
- entering the fixed-income market,
- pushing Bitcoin into enterprise infrastructure.
As Mallers puts it:
Any product we can launch, any capital market we can access—I’m doing everything I can to grow Bitcoin per share. That’s the job.
Building on Bitcoin, Not Beside It
The concept of building infrastructure natively on Bitcoin is not novel, yet few enterprises, particularly within public markets, have pursued it at scale.
Mallers views this as a significant untapped potential.
We haven’t seen anyone with access to public capital and a massive Bitcoin balance sheet actually built on top of Bitcoin. We’re changing that,
he asserts.
This positioning is not just a branding exercise. Twenty-One is structured explicitly to benefit from operating leverage in Bitcoin-based ventures. That could include product launches in custody, payments, advisory services, or Lightning-based applications—all areas where Mallers has existing experience through Strike.
It’s a departure from the “buy and hold” ethos. Here, capital markets aren’t just a tool for leverage—they’re a springboard for infrastructure development. This sets up a contrast with Saylor’s MicroStrategy, which operates largely as a holding company. Twenty-One, by contrast, positions itself as a Bitcoin-native operator.
Stablecoins vs. Protocols
In the same interview, Mallers addressed the growing attention around stablecoin legislation and payments—especially with partners like Tether in the picture. Wouldn’t stablecoins, with their speed and low cost, make Bitcoin payments obsolete?
Mallers don't see it that way.
Bitcoin and stablecoins carry tremendously different properties. Stablecoins are issued by companies, backed by nation-state currencies. Bitcoin is censorship-resistant, neutral, and controlled by no one,
he clarifies.
Mallers characterizes Bitcoin as a “neutral reserve payments protocol”, a description that aligns with the geopolitical dimensions of his long-term vision. While stablecoins serve everyday fiat transactions, Bitcoin’s role is systemic, he argues: it’s the open, immutable value layer of the internet.
Mallers also highlights usage patterns: in many emerging markets, people aren’t choosing between Bitcoin and Tether. They’re using both—to replace their local currency, not each other.
The two are complementary tools, not competitors.
Tether, SoftBank, and the Capital Stack
The formation of Twenty-One came through a business combination with Cantor Equity Partners, a SPAC sponsored by Cantor Fitzgerald. The deal includes $585 million in new capital, split between a $385M convertible note raise and a $200M PIPE investment. The bulk of the proceeds will go toward buying more Bitcoin.
Tether and Bitfinex will hold a majority stake, with SoftBank taking a significant minority.
It’s a curious mix:
- the world's largest stablecoin issuer,
- one of Japan’s most powerful investment conglomerates,
- a lightning-fast Bitcoin evangelist.
With Jack at the helm, we are proud to support this effort to further Bitcoin’s adoption. Twenty One will take a Bitcoin-first approach that aligns with our vision—prioritizing accumulation over speculation,
affirmed Paolo Ardoino, CEO of Tether.
SoftBank’s involvement hints at broader ambitions. The company, best known for moonshot bets in AI and telecom, may see Bitcoin as the next layer of open infrastructure—and Twenty-One as its entry point.
The Saylor Comparison, Revisited
So, is Twenty-One a MicroStrategy competitor? Mallers avoid the framing, but the market won’t.
- Both companies are public vehicles for Bitcoin accumulation.
- Both rely on investor belief in BTC’s long-term appreciation.
- But only one claims to operate as a Bitcoin-native company—with the cash flow, product roadmap, and capital strategy to match.
Whether Wall Street wants infrastructure over inventory is still an open question. But Mallers is betting that public markets are ready for more than a balance sheet. They want a business.
When you invest in us you’re not just buying Bitcoin. You’re backing a team that’s building on it,
he pledges.
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