Twenty One Capital is taking a bold stance against the grain of institutional crypto adoption trends. While Standard Chartered forecasts that corporate treasuries will eventually hold 10% of Ethereum’s total supply compared to just 1% as of July 30, the investment firm is steering clear of both Ethereum and Solana entirely.
Strike founder and CEO of Twenty One Capital, James Mallers, revealed in a Bloomberg interview that his firm currently holds over 43,000 BTC with $1.3 billion in unrealized gains. The company plans to pioneer a fresh approach to measuring asset performance by denominating returns in Bitcoin rather than traditional fiat currencies.
Bitcoin Maximalism Over Diversification
“We’re not trying to beat the S&P in dollar terms. We want to outperform in Bitcoin terms—this is the sovereign monetary network we’re betting on,” Mallers explained during the interview. His firm’s philosophy centers on viewing Bitcoin as a sovereign monetary asset rather than a technology stock, which shapes their entire investment strategy.
Mallers made it crystal clear that Ethereum and Solana have no place in Twenty One Capital’s portfolio. “We’re not allocating to ETH or SOL. That’s not our philosophy. Bitcoin is not a tech stock. It’s a sovereign monetary asset. This isn’t about yield farming or L2 TPS metrics. It’s about money,” he stated.
Twenty One plans to trade under $XXI and plans to start with a Bitcoin Treasury of 42,000 BTC – It compares itself directly with Strategy pic.twitter.com/0Wd6ebTbrI
— NLNico (@btcNLNico) April 23, 2025
The CEO draws sharp distinctions between what he considers monetary networks versus speculative technology platforms disguised as currencies. While many asset managers emphasize diversification, Mallers argues that Bitcoin represents the most diversified asset in history because it operates beyond borders, political regimes, and counterparty risks.
The Ethereum Community Pushes Forward
Despite Mallers’ dismissal of Ethereum as unsuitable for sovereign-grade money, developers and supporters within the ecosystem remain focused on building decentralized infrastructure. Alon Muroch, co-founder of SSV Labs and core contributor to the SSV Network, presents a contrasting long-term perspective.
“By 2035, Ethereum could power billions of daily transactions, integrating quantum-resistant cryptography and AI-driven smart contracts to create the foundations for the open digital economy,” Muroch told BeInCrypto. His vision extends far beyond Ethereum’s current classification as a tech platform.
Fundstrat Capital CIO Thomas Lee shares similar optimism about Ethereum’s future prospects. “On Ethereum’s 10th birthday, ETH is arguably the most important macro theme for the next 10 years as Wall Street moves to financialize its business on the blockchain,” Lee wrote in a recent post.
Mallers continues to criticize Ethereum’s constant technical evolution, pointing to upgrades like The Merge and the upcoming Pectra upgrade as evidence that it functions more like a tech cycle than a stable monetary system. “We’re building exposure to a global monetary system—not buying into protocol upgrades or new tokenomics,” he emphasized.
Implications for Institutional Investment Strategies
Twenty One Capital’s Bitcoin-only approach may inspire other institutional investors to adopt more focused cryptocurrency strategies rather than diversifying across multiple digital assets. This maximalist stance could contribute to increased Bitcoin accumulation among corporate treasuries seeking exposure to what they view as digital sound money.
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