Twenty One Capital Shifts Gears with Ambitious Operating Business Strategy

Raphael Zagury, the newly appointed CEO of Twenty One Capital, has outlined a strategy to outperform Bitcoin by transforming the company into a diversified operating business.

The core idea is to use Bitcoin as the benchmark for every decision, and only invest in assets that can beat it on a risk-adjusted basis. This means that Twenty One Capital will not simply accumulate Bitcoin, but rather use its existing holdings of 43,514 BTC as the foundation for a portfolio of operating businesses.

Zagury's strategy is inspired by Warren Buffett's conglomerate Berkshire Hathaway, which generates cash from operating businesses and then redeployed it into more assets. Twenty One Capital aims to follow a similar model, with its Bitcoin holdings anchoring a portfolio of businesses that compound over time.

The company has already started exploring operational ventures such as Bitcoin mining and energy trading through its partnership with Elektron Energy. This pivot is necessary, according to Zagury, as the current trajectory would leave Twenty One Capital as just another company holding Bitcoin without any differentiating logic for why its shares should trade at a premium.