Unchained

Twenty One Aims to Buy as Much Bitcoin as Possible. Can It Succeed? - Ep. 824

19 snips
Apr 25, 2025
Matthew Sigel, Head of Digital Assets Research at VanEck, examines the ambitious Bitcoin acquisition strategy of Twenty One, backed by Tether and SoftBank. He discusses the implications of their plan to start with 42,000 BTC and the risks if their stock dips below NAV. Sigel also proposes innovative 'BIT Bonds' linked to Bitcoin for U.S. Treasury, sparking intrigue. Furthermore, regulatory reporter Veronica Irwin reveals potential upcoming legislation that could reshape the crypto market structure, making for a compelling conversation.
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INSIGHT

Twenty One's Bitcoin Strategy

  • Twenty One aims to replicate MicroStrategy's Bitcoin acquisition playbook, leveraging convertible debt and equity raises.
  • SoftBank and Tether's involvement signals serious institutional adoption in the U.S. Bitcoin market.
INSIGHT

Premium Trading Enables Growth

  • Twenty One plans to grow its Bitcoin holdings accretively by issuing convertible debt and equity when shares trade at a premium to Bitcoin.
  • This premium trading dynamic is crucial to making their Bitcoin acquisition strategy financially viable.
ADVICE

Watch Stock Premium vs. Discount

  • Investors should monitor whether Twenty One's stock trades at a premium or discount to its Bitcoin value to assess strategy sustainability.
  • A discount breaks the Bitcoin yield engine, making financing via equity value destructive for shareholders.
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