JPMorgan Account Closure Justification

On Sunday, Mallers posted on X:

“Last month JP Morgan Chase kicked me out of the bank. It was weird. My dad has been a private client there for over 30 years.”

When he asked why his accounts were closed, the bank reportedly replied, “We are not allowed to tell you.” Mallers also shared a photo of a letter that appeared to come from JPMorgan and said, “I’m very proud I framed it.”

The letter stated:

“We have identified concerning activity. We are committed to complying with regulations and ensuring the safety and integrity of the financial system. Due to this commitment, we may not be able to open new accounts for you in the future.”

These statements highlight that crypto CEOs still face risks in accessing traditional banking services. On social media, users debated whether the alleged “Operation Chokepoint 2.0” remains active under the Biden administration.

Political and Industry Reactions

Operation Chokepoint 2.0 is described as a coordinated effort during the Biden administration in which federal banking regulators allegedly pressured banks to deny services to companies and executives in the crypto ecosystem.

In August, former President Trump issued an executive order aimed at preventing the closure of accounts for crypto-related businesses. In July, Trump’s Digital Asset Markets Working Group stated:

“The Trump Administration worked to end regulatory efforts that denied banking services to the digital asset sector, fully and once for all ending Operation Chokepoint 2.0.”

Tether CEO Paolo Ardoino responded to Mallers on X:

“Bitcoin will withstand the test of time. Organizations trying to undermine it will fail and disappear. They cannot prevent people from choosing freedom.”

Bo Hines, who previously led former President Donald Trump’s Council of Advisers on Digital Assets and now serves as a Strategic Advisor at Tether, reacted to the incident on X:

“Hey Chase… Operation Choke Point is over, right? Just checking.”

Hines’ comment reflects the view among some crypto advocates that political pressure, rather than genuine compliance issues, continues to influence banking relationships.

Implications and Risks for the Crypto Sector

Mallers’ account closure has brought financial access and regulatory risks in the crypto sector back into focus. Experts warn that such moves will not eliminate the industry; instead, they may push companies outside the U.S. Furthermore, these actions pose risks to blockchain innovation and democratic financial access.

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The transfer instantly propelled Twenty One to the position of the world’s third-largest corporate Bitcoin holder, behind only Strategy (formerly MicroStrategy) and MARA Holdings.

Behind the Billions: How the Bitcoin Was Allocated

On June 3, Tether CEO Paolo Ardoino confirmed two large transactions totaling 11,417 Bitcoin. One included a 10,500 BTC transfer to an address connected to SoftBank’s investment in Twenty One Capital. The second involved 917 BTC sent to investors with equity stakes in the venture.

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An even larger move occurred the previous day: 25,812 Bitcoin were shifted in three transactions. That included 7,000 BTC from Bitfinex as direct investment, 14,000 BTC from Tether, and 4,812 BTC as pre-funding for an equity raise.

A New Kind of Bitcoin-Native Finance

Twenty One Capital aims to build Bitcoin-native infrastructure for capital markets—delivering services like lending, custody, and asset issuance directly on Bitcoin rails. The company plans to go public via a SPAC merger with Cantor Fitzgerald, valuing the company at $3.6 billion.

While this bold initiative highlights growing institutional interest in Bitcoin, it also reignites debate over transparency. At the Bitcoin 2025 conference, Strategy chairman Michael Saylor argued against onchain proof-of-reserves, citing security concerns. Meanwhile, analytics firm Arkham Intelligence claims to have identified 87% of Strategy’s Bitcoin holdings onchain.

The contrast reveals a growing divide in how major players approach visibility and risk in the evolving crypto economy.

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Tether Acquires 4,812 Bitcoin for Strategic Investment

Stablecoin issuer Tether purchased 4,812 BTC valued at $458.7 million for its affiliate investment firm, Twenty One Capital. The purchase was executed on May 9 at an average price of $95,319, with the assets transferred into escrow. The transaction was disclosed in a filing by Cantor Equity Partners to the SEC on May 13.

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Following this deal, Twenty One now holds a total of 36,312 BTC, placing it among the top corporate holders of Bitcoin. The firm is expected to trade under the ticker “XXI” upon the completion of a SPAC merger with Wall Street heavyweight Cantor Fitzgerald.

According to CEO Jack Mallers, the merger is in the approval phase. Unlike traditional firms, Twenty One Capital focuses not on earnings per share, but on “Bitcoin per share,” positioning itself as a pure vehicle for crypto-native investors.

The company aims to accumulate 42,000 BTC, with contributions projected as follows: 23,950 Bitcoin from Tether, 10,500 from SoftBank, and 7,000 from Bitfinex, to be converted into equity at $10 per share.

A New Challenger to Strategy?

In its SEC filings, Twenty One Capital expressed its ambition to overtake Strategy (formerly MicroStrategy) as the most efficient vehicle for Bitcoin exposure. Promising agility and operational alignment with Bitcoin’s core ethos, the firm might soon redefine institutional crypto investing.

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“This isn’t a change in direction, but an expansion of my commitment,” Mallers wrote in a letter to Strike investors dated April 25.

Bitcoin at the Heart of Every Decision

Mallers explained that every major decision he makes begins with a single question: “Is this good for Bitcoin?“
“If Bitcoin succeeds, humanity succeeds,” he emphasized, noting that the creation of Twenty One Capital is meant to serve that greater purpose.

He pointed out that Strike’s primary mission is to make Bitcoin accessible worldwide, while Twenty One Capital is focused on increasing Bitcoin ownership per share (BPS) and building Bitcoin-native financial tools.

“These are two separate entities with distinct objectives, but they share the same philosophy: if Bitcoin wins, we win,” he added.

Twenty One Capital Launches with Strong Backing

Twenty One Capital officially launched on April 23, supported by major players like Tether, SoftBank, and Cantor Fitzgerald.
The firm aims to rival Michael Saylor’s Strategy and provide investors with more capital-efficient Bitcoin exposure, planning to launch with an impressive 42,000 Bitcoin.

Strike’s Impressive Growth Figures Revealed

For the first time, Mallers shared Strike’s internal performance data from 2024:

• Over $6 billion in transaction volume

• 600% year-over-year growth

• 85% gross profit margin

• Zero customer acquisition cost

Despite operating with a lean team of 75 employees, Strike anticipates achieving significant profitability in the upcoming year.

Concerns Over Dual CEO Role

Mallers’ simultaneous leadership at both Strike and Twenty One Capital has sparked questions across social media.
Several crypto commentators wondered if he would follow an “Elon Musk-style” approach, managing both companies, or if a new CEO would be appointed for Strike.

Meanwhile, speculation has emerged that Twenty One Capital might eventually acquire Strike.
Swan Bitcoin CEO Cory Klippsten suggested, “It’s probably safe to assume this company will acquire Strike,” while Daniel Sempere Pico echoed similar thoughts. However, neither Mallers nor Strike has confirmed any acquisition plans.

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