Twenty One Capital's shares plummeted 20% on their stock market debut

Source: CritpoTendencia Original Title: Twenty One Capital’s Shares Plummet -20% During Their Stock Market Debut Original Link: The shares of Jack Mallers’ firm, Twenty One Capital, experienced a setback during their first day trading on the stock exchange. The stocks fell 19.97% from their opening price during the trading session. This performance reflects the difficulties currently faced by treasury firms linked to the cryptocurrency market.

It is important to note that the company went public through a merger with the special purpose acquisition company (SPAC) Cantor Equity Partners. This mechanism allowed it to become the latest crypto ecosystem firm to join the stock market of the world’s largest economy.

However, as mentioned, the debut was not favorable for Mallers’ company. The Bitcoin treasury firm based in Austin, Texas, closed the day with its shares at $11.42 each, compared to the previous SPAC price of $14.27 per share.

Twenty One’s shares debut on the stock exchange as part of a company backed by Cantor Fitzgerald, Tether, and SoftBank. Still, the current market conditions are not the most conducive. For months, companies in the cryptocurrency treasury sector have been experiencing significant capital outflows.

The deterioration in this segment began even before the bear market affecting the spot crypto market.

Will Twenty One Capital’s Shares Recover?

For now, it is difficult to anticipate an immediate recovery of the company’s shares with certainty. However, a bullish rebound at some point is reasonable to expect. According to Mallers’ own outlook, the sector faces a temporary correction, which would imply a subsequent return to growth.

The magnitude of this potential recovery can be estimated considering the relevance of the BTC reserves held by the company. Recent data indicates that Twenty One Capital holds 43,514 BTC in its treasuries, making it the third-largest corporate holder of the cryptocurrency, behind Strategy and the miner MARA.

This suggests that, in the event of a crypto treasury sector recovery, the company could be among the main beneficiaries. As is typical in bull cycles, large capital tends to flow toward the most solid market players. But Twenty One’s shares would not depend solely on this factor: the firm is also advancing in other areas of the crypto ecosystem.

The company is working on developing financial infrastructure related to digital assets, as well as initiatives in education and media based on Bitcoin. It is a large-scale project currently undergoing a phase of accumulation and consolidation amid the bear market.