Key facts
- XXI Capital CEO Jack Mallers announced the firm is abandoning the Bitcoin-per-share metric.
- Mallers criticized companies that dilute shareholders to fund Bitcoin purchases.
- MicroStrategy recently raised $2.1 billion through dilutive stock issuance to acquire more Bitcoin.
- XXI Capital holds 43,514 Bitcoin, valued at approximately $3.8 billion.
- XXI Capital's stock has declined over 70% in the past six months.
Jack Mallers, CEO of Bitcoin treasury firm XXI Capital, has announced his company is abandoning the Bitcoin-per-share metric, a move that directly challenges the strategy pioneered by Michael Saylor's MicroStrategy. Mallers stated on his podcast that the market now desires Bitcoin equities that offer leverage and cash flow without diluting common shareholders.
Mallers' comments appear to be a pointed critique of MicroStrategy's recent $2.1 billion capital raise, of which $1.83 billion came from the dilutive issuance of over 10 million shares to purchase more Bitcoin. This strategy reduces the Bitcoin held per existing share, even as total holdings increase.
The broader Bitcoin treasury sector is facing significant headwinds, with nearly 40% of such companies trading below their net asset value and over 60% having acquired Bitcoin at prices higher than current market levels. MicroStrategy's stock fell 8% on the day of its capital raise announcement and has declined 62% over the past six months.
XXI Capital, which holds 43,514 Bitcoin valued at approximately $3.8 billion and is backed by firms like Cantor Fitzgerald, Tether, and SoftBank, is positioning itself differently. However, critics note that XXI Capital's own stock has underperformed MicroStrategy, dropping over 70% in six months, and the company has yet to launch a promised cash-generating business.