Twenty One CEO says Bitcoin treasury premium model cannot last forever

Twenty One Capital is shifting from relying mainly on the market premium above the net asset value of its Bitcoin holdings toward building operating businesses that can generate cash flow from its balance sheet. In a July 22 fireside chat furnished to the SEC (U.S. securities regulator), newly appointed CEO Raphael Zagury said issuing shares above the value of a company’s Bitcoin and using the proceeds to buy more BTC reflects a temporary market dislocation that should fade as more firms adopt the model. He said premiums could return at times, but should not remain the sole source of shareholder returns. The company’s updated priorities include buying or building businesses, expanding capital-markets capabilities, developing Bitcoin-backed financial products and creating a Bitcoin-native lending platform, with acquisitions expected to be accretive in Bitcoin terms. Zagury, who became CEO effective July 20 after Jack Mallers resigned as chief executive and director, said mining could become one return engine, though he cautioned Twenty One has not yet built that model and execution will be difficult. Twenty One reported 43,514 BTC as of March 31 in its first-quarter filing, which showed no operating revenue and a $10.57 million loss from operations. Zagury also said that matching Bitcoin’s value with lower volatility could still be a strong outcome, while outperforming BTC over time would likely require exceptional opportunities or irresponsible leverage. He presented the strategy as an effort to improve risk-adjusted returns, but the company has not yet demonstrated those results.