Twenty One Capital Abandons 'Treasury Playbook' as CEO Warns of Dying Model

Raphael Zagury, newly appointed CEO of Twenty One Capital, warned that the 'treasury playbook' for Bitcoin-focused companies may be nearing its end. This strategy involves issuing shares above a company's net asset value and using the proceeds to buy more BTC.

Zagury said this model cannot provide easy returns forever and emphasized that companies should build cash-generating businesses around their BTC balance sheet. He pointed out that Twenty One Capital has already outlined an operating-company model in May, which includes buying or building operating businesses, expanding capital-markets capabilities, and developing Bitcoin-backed financial products.

The shift in strategy coincides with a leadership change at Twenty One Capital. Jack Mallers resigned as CEO effective July 20, but his exit is unrelated to any disagreement, according to the company. Zagury used mining as an example of how companies can generate cash flow and compared its potential to the role insurance plays in Berkshire Hathaway's capital-allocation model.