Strike's Growth Exploded 600% Last Year

Perhaps the reason Jack Mallers was picked to lead Twenty One Capital, the new bitcoin treasury firm backed by stablecoin giant Tether and Japanese investment firm Softbank

A copy of an investor letter penned by Jack Mallers and shared by the CEO on Friday revealed some staggering statistics about the startup’s performance in 2024.

After tying the knot with Bitcoin legal tender in El Salvador, and achieving cult-like status in the bitcoin community for his role in revolutionizing the startup, Jack Mallers is now venturing into new domains.

Together with stablecoin giant Tether and Japanese investment firm Softbank, they unveiled Twenty One Capital, a firm focused on bitcoin treasury.

Perhaps the reason Jack Mallers was picked to lead the new firm is because he has proven he can build and run a bitcoin company like Strike, which generated more than $6 billion in payments volume and achieved growth upwards of 600% year-over-year (YoY) in 2024, according to an investor letter posted by Mallers on Friday.

The 31-year-old Chicago native and college dropout launched Strike’s parent company Zap Solutions, in 2017 after hearing about bitcoin from his father four years earlier. He learnt how to code, built a bitcoin wallet, and then, after multiple iterations, rebranded as “Strike” circa 2020.

The company became a staple on the bitcoin landscape, and after helping to make bitcoin legal tender in El Salvador, Mallers achieved cult-like status in the bitcoin community.

Then on Wednesday, news about Twenty One Capital dropped, and Bitcoiners began to wonder if Mallers was stepping down from Strike after he was appointed CEO of the new bitcoin treasury firm.

Instead, he doubled down on his commitment to maximize Strike’s success, and shared the company’s private financial metrics to demonstrate that the startup was indeed thriving: 600% YoY growth in 2024, over $6 billion in payments volume, a gross profit margin of 85%, and an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of 21%.

“Over the last five years, we’ve built Strike into one of the most profitable and fastest-growing companies in the world,” Mallers wrote in the letter. “Today, I’m sharing key metrics publicly for the first time,” he added.

The letter goes on to provide one of the company’s key goals for 2025, making “8-9 figures in net profit,” a feat Mallers hopes to achieve with only 75 employees.

As for the folks who thought he was jumping ship after taking the reins at Twenty One Capital, Mallers had this to say:

I will serve as co-founder and CEO of Twenty One while continuing to lead Strike. Let me be clear, this is not a shift in my commitment, it’s an extension of it.