Twenty One Capital CEO warns traditional Bitcoin treasury model is fading

Twenty One Capital has a new leader, and he is already questioning the standard playbook for corporate Bitcoin holdings. Raphael Zagury took over as CEO after Jack Mallers stepped down. In a recent filing with regulators, Zagury pointed out that issuing shares above net asset value to buy more Bitcoin is only a temporary market quirk. As more companies copy this trick, those premiums will shrink.

To adapt, Twenty One Capital plans to build or buy cash generating businesses rather than rely solely on constant coin accumulation. The firm wants to develop Bitcoin backed financial products, expand capital markets work, and launch a native lending platform. Zagury compared the idea to how Berkshire Hathaway uses insurance float to fund other investments, though he admitted execution will be tough.

Recent financial reports show the company held over 43,500 Bitcoin as of March, but it also posted a small operating loss without significant revenue from active businesses. The team is now working to prove that operating companies can deliver better risk adjusted returns measured in Bitcoin terms. Traders should watch closely to see if these new business lines can actually generate the cash flow the company needs.