The cryptocurrency market is buzzing with excitement as Bitcoin continues its steady climb, maintaining a price above $90,000 per coin. In this dynamic environment, a pivotal question arises: who exactly is driving this upward momentum? The answer lies in a series of groundbreaking developments, including the launch of a new company by Jack Mallers, the founder of Strike, which aims to revolutionize Bitcoin investment in a way reminiscent of the early days of MicroStrategy’s Bitcoin acquisition strategy.

Jack Mallers Launches 21: A Pure Bitcoin Accumulation Powerhouse

One of the most significant news items shaking the Bitcoin world today is the unveiling of 21, a new publicly traded company founded by Jack Mallers. This company’s sole mission is to accumulate as much Bitcoin as possible, positioning itself as a direct competitor to MicroStrategy but with an even more focused and ambitious approach. The company already holds over 42,000 Bitcoin, valued at approximately $4 billion, and is backed by heavyweight investors such as Tether, SoftBank, and Caner Fitzgerald.

The origins of 21 are deeply rooted in Jack’s long-standing relationship with the Tether group, a connection that spans over a decade. Jack explains that the inspiration for launching 21 came from observing the success of companies like MicroStrategy, led by Michael Saylor, which have publicly acquired Bitcoin and seen explosive growth in both their stock price and Bitcoin holdings over the past several years.

Unlike companies that pivot from unrelated business models to Bitcoin, 21 is designed from the ground up as a pure Bitcoin company. This focus allows it to deliver what Mallers calls “blue chip credibility” combined with “startup upside.” The goal is not only to accumulate Bitcoin but also to develop Bitcoin-related products and cash flow, creating a dynamic and growing exposure to Bitcoin for shareholders.

The MicroStrategy Playbook and How 21 Plans to Outperform

To understand the potential of 21, it’s essential to revisit MicroStrategy’s strategy, which transformed the company into a Bitcoin powerhouse. MicroStrategy’s approach involved borrowing cheap money through convertible notes at near-zero interest rates and using that capital to buy substantial amounts of Bitcoin. As Bitcoin’s price increased, so did the company’s stock price, enabling them to borrow even more money and continue the cycle of accumulation. This strategy not only increased their Bitcoin holdings but also created significant shareholder value.

Jack Mallers sees 21 as a company that will refine and improve this model. Unlike MicroStrategy, which started as a software company, 21 is a dedicated Bitcoin business from day one. It aims to be a pure Bitcoin play that surpasses even the largest Bitcoin ETFs like BlackRock’s IBID, which provide static Bitcoin exposure through financial instruments but don’t actively grow the Bitcoin holdings behind the scenes.

21 introduces innovative metrics to measure its success, including:

• BPS (Bitcoin Per Share): Instead of traditional earnings per share, 21 measures how much Bitcoin each share represents and aims to increase this over time.
• BRR (Bitcoin Return Rate): A metric designed to show the growth rate of Bitcoin holdings relative to the company’s shares.

Jack emphasizes that as CEO, his job is to grow the Bitcoin per share for shareholders, making 21 an operating business that actively works to increase Bitcoin exposure, rather than a passive investment vehicle. This approach could redefine how investors gain exposure to Bitcoin, offering a way to get richer in Bitcoin terms, not just fiat currency terms.

Strike and 21: Complementary Bitcoin Ventures

Many might wonder what this means for Strike, the Bitcoin payment platform also founded and led by Jack Mallers. Strike remains a highly profitable company, boasting an 85% gross profit margin with only 75 employees. Jack continues to lead both companies, leveraging Strike’s success and infrastructure while building 21 as a complementary business focused on Bitcoin accumulation and product development.

The synergy between Strike and 21 could be a powerful driver for Bitcoin adoption and investment growth, fueling the broader Bitcoin ecosystem and pushing the price of the underlying asset higher through institutional and retail demand.

US Bitcoin ETFs See Biggest Inflows Since January

Beyond individual companies, institutional interest in Bitcoin is also surging. Recent data shows that US Bitcoin ETFs have experienced over $2.2 billion in inflows in just the first few days of the week, marking the largest inflows since January. This resurgence in institutional capital signals renewed confidence and excitement about Bitcoin’s future, especially after a period of relative stagnation.

January had marked a local top for Bitcoin investment, followed by a lull in activity. Now, with ETFs attracting significant inflows, it’s clear that institutional buyers are back in force, providing a strong foundation for the next Bitcoin rally. This trend is a crucial indicator for investors watching market dynamics and looking for signs of sustainable growth.

Cardano Founder’s Bold Prediction: The Future of Ethereum

In the midst of Bitcoin’s bullish momentum, a controversial statement has emerged from Charles Hoskinson, the founder of Cardano and one of the original co-founders of Ethereum. Hoskinson predicts that Ethereum will not survive more than 10 to 15 years. His reasoning is rooted in the challenges Ethereum faces from layer 2 solutions and competing blockchains.

“I don’t think Ethereum will survive, you know, more than 10 years to 15 years. The layer twos will continue to suckle out all of the alpha, and people will start fighting and it’ll get harder and harder for Vitalik to be able to hold it together through sheer force of will. Users will gradually migrate to other places and then they’re going to get eclipsed by Bitcoin DeFi once that turns on.” – Charles Hoskinson

Hoskinson points out that layer 2 solutions, which are designed to increase Ethereum’s scalability, could eventually become independent blockchains themselves, potentially fracturing Ethereum’s ecosystem. He also highlights competition from newer protocols like Solana and Avalanche, which are rapidly gaining traction and market share.

Analyzing the Ethereum Outlook

While Hoskinson’s prediction is bold and certainly influenced by his vested interest in Cardano, it raises important questions about Ethereum’s long-term sustainability. Ethereum’s strengths today include:

• Security: Ethereum is considered highly secure and trusted, which is a critical factor for decentralized applications.
• Decentralization: Compared to newer blockchains, Ethereum maintains a more decentralized network, which is attractive to many users and developers.
• Network Effect: Ethereum has the largest developer community and the most extensive ecosystem of decentralized applications (dApps), which creates a powerful network effect.

However, the concerns about layer 2 solutions potentially overshadowing Ethereum’s base layer are valid. If layer 2 chains gain sufficient security and user adoption, they might “break off” and become their own independent chains, reducing Ethereum’s dominance. This process could mirror how successful startups sometimes spin off or evolve beyond their original platforms.

From an investor’s perspective, this uncertainty means that holding Ethereum requires faith in its ability to maintain its network effect and adapt to technological challenges. It’s also worth noting that if layer 2 solutions flourish, the overall Ethereum ecosystem might grow, even if the base chain’s role changes.

Final Thoughts: Navigating the Bitcoin and Crypto Landscape

The cryptocurrency market is at an exciting crossroads. The launch of 21 by Jack Mallers represents a new frontier in Bitcoin investment, offering a pure Bitcoin accumulation strategy that could redefine how investors gain exposure to this digital asset. Backed by major players and inspired by the MicroStrategy model, 21 aims to grow Bitcoin per share actively and deliver Bitcoin cash flow products, distinguishing itself from ETFs and other investment vehicles.

Meanwhile, institutional interest is reigniting with massive inflows into Bitcoin ETFs, signaling renewed confidence and a potential catalyst for the next phase of Bitcoin’s price rally. For investors, this means paying close attention to these inflows and the strategies of companies like 21 and MicroStrategy alike.

On the altcoin front, Charles Hoskinson’s prediction about Ethereum’s future adds a layer of complexity to the crypto narrative. While Ethereum remains a dominant force due to its security, decentralization, and network effect, the rise of layer 2 solutions and competing chains could reshape the landscape over the next decade. This underscores the importance of continuous research and vigilance when investing in the crypto space.

As always, staying informed and understanding the evolving strategies and technologies in the cryptocurrency world will provide investors with an edge. Whether you’re a Bitcoin maximalist or exploring altcoins, the market’s rapid evolution demands attention and adaptability.

Join the Conversation and Stay Updated

If you’re passionate about Bitcoin and crypto, consider participating in upcoming events like the Bitcoin Conference 2025 in Las Vegas, where industry leaders including Jack Mallers and others will share insights and strategies. Use the code ALTCOINDAILY for a discount on tickets and join a community that’s shaping the future of finance.

Remember, the crypto world moves fast. Subscribing to trusted sources and engaging with the community will help you stay ahead. With Bitcoin poised for new heights and companies like 21 pushing the boundaries of investment, now is the time to deepen your understanding and position yourself for the opportunities ahead.

Stay curious, stay informed, and keep exploring the exciting world of cryptocurrency.