Jack Mallers Steps Down As CEO As Bitcoin Company $XXI Crashes 91%
In a Nutshell
Jack Mallers resigned as CEO of 21 Capital after the Bitcoin treasury company lost nearly $1 billion on its 43,500 BTC holdings, with the stock crashing 91% from its peak. The company burns $260 million annually with zero revenue and offers no advantage over simply buying Bitcoin or a Bitcoin ETF. Mallers is shifting focus to Strike while similar Bitcoin treasury plays like Satuma Technology are shutting down after 80% investor losses.
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The second largest publicly traded Bitcoin holder had its CEO step down. The speaker is not pro-Bitcoin and does not care for it, but believes in the right to buy Bitcoin. The speaker does not understand the point of companies like 21 Capital.
21 Capital is a publicly traded company that acts as a Bitcoin treasury. The company buys Bitcoin and purchased it toward the middle to the end of last year when Bitcoin was around $80,000 to $100,000. Bitcoin is now down 40-50% from those levels. The company does not generate any operations beyond buying Bitcoin. The speaker questions why anyone would invest in 21 Capital instead of a Bitcoin ETF.
The speaker compares 21 Capital to the Michael Saylor approach. Jack Mallers is described as a young, trendy individual who was previously celebrated by large crypto Twitter accounts for buying millions of dollars worth of Bitcoin. The speaker notes how the same community that glorified him is now turning against him.
The speaker states that the crypto community supports individuals when their actions are advantageous and scolds them when they become disadvantageous. Jack Mallers bought Bitcoin while sentiment was positive but purchased too much at elevated levels. The speaker notes that the simplest approach is not to overextend at overbought levels.
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