Unchained
Twenty One Aims to Buy as Much Bitcoin as Possible. Can It Succeed? - Ep. 824
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.
49:08
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Quick takeaways
- Twenty One's strategy involves leveraging convertible debt and equity raises to amplify Bitcoin acquisition, resembling MicroStrategy's approach but potentially facing risks if stock values drop.
- The growing trend of corporate Bitcoin accumulation highlights both opportunities for returns and challenges related to market volatility, making cautious investment strategies essential for market participants.
Deep dives
Impact of Corporations on Bitcoin Accumulation
An increasing number of public companies are adopting a Bitcoin accumulation strategy, mirroring the approach taken by MicroStrategy. As of now, over 100 firms have been reported to hold Bitcoin, surpassing the growth rate of Bitcoin held by ETFs. This trend reflects corporate investors' desire to replicate MicroStrategy's success, as they seek to attract investor interest through the potential premium on their Bitcoin holdings. Notably, the collaboration between Tether and SoftBank signifies a significant entry into the U.S. market, marking a milestone for major corporations in the crypto ecosystem.
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