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XXI takes on Strategy (MSTR): what's behind it?

Bitcoiner vs Bitcoiner, Jack Mallers vs Michael Saylor: the winner is already clear: Bitcoin.

By Mike Hesp
• 2 min read
XXI takes on Strategy (MSTR): what's behind it?

Bitcoiner vs Bitcoiner, Jack Mallers vs Michael Saylor: the winner is already clear: Bitcoin. The new company Twenty One plans to challenge Strategy's dominant position (formerly MicroStrategy) and is pouring billions into Bitcoin for it. Since Strategy started its Bitcoin strategy, its stock has surged more than 2,000%, and investors are hoping for a similar breakout at Twenty One. An entry could be lucrative right now, but caution is warranted. To understand that, we need to look at the Bitcoin vs altcoins relationship.

Twenty One: “As much capital as possible for Bitcoin”

Twenty One's mission is crystal clear, as CEO Jack Mallers told View post on X: "Our goal is to gather as much capital as possible to buy Bitcoin." The only rule: investors should aim for as many Bitcoin per share as possible (Bitcoin per Share, BPS). According to their own numbers, Twenty One currently holds 31,500 BTC against 267 million shares outstanding, yielding a BPS of 0.00011783 BTC.

Additionally, the company wants to support Bitcoin-based financial products like credit models, capital markets instruments, and new innovations that could replace traditional financial products. A partnership with Strike, the Bitcoin exchange where Mallers is also CEO, seems plausible.

Strategy copy or truly innovative?

At first glance, Twenty One looks like it's simply copying Michael Saylor's playbook. But an internal presentation, "Project Mystery Investor Presentation", points to a deliberate distinction between the two companies.

Twenty One claims to operate more capital-efficiently. Where Strategy, with a market cap of $92 billion, might be too big to still achieve high Bitcoin returns, Twenty One would have that advantage.

MSTR, MARA, CEP: the power of the Bitcoin strategy

Investors seem confident: after the announcement, Twenty One's stock jumped more than 50% (currently CEP, soon trading under ticker XXI). But Twenty One still has to perform to match Strategy. Since Strategy launched its Bitcoin strategy in August 2020, MSTR stock is up about 2,300%, a growth even Bitcoin couldn't match.

Other firms like Metaplanet, Bitcoin miners, and even GameStop have copied the Bitcoin strategy with mixed results.

Strategy vs Twenty One: "In the end, the Bitcoiner wins"

Michael Saylor, a staunch Bitcoin maximalist, welcomed Twenty One's arrival. With Strategy, he set the tone and advised entities like Microsoft and even the U.S. government on Bitcoin purchases.

Strategy enjoys the first-mover advantage: as a pioneer of Bitcoin-based corporate strategy, it enjoys a market dominance similar to Bitcoin’s over its altcoin spin-offs like Bitcoin Cash and Bitcoin Gold.

Twenty One still has to prove itself, though it has solid financial backing from heavyweights like Tether and Cantor Fitzgerald. Cantor Fitzgerald even has connections inside the U.S. government.

Financial analyst Peter Duan View post on X: "In the end, Bitcoiners win, no doubt."

Getting into Twenty One (XXI)?

Given Strategy's success story, investing in Twenty One looks appealing. The 50% jump after the announcement says it all.

But there’s risk: both Strategy and Twenty One depend on companies—quite different from Bitcoin itself, which has no central authority.

While no one expects Mallers or Saylor to abandon Bitcoin, the future still comes with no guarantees.

Many hardcore Bitcoiners opt to stay BTC-only, without 'Bitcoin stocks' getting in the way.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.