Twenty One Capital Bolsters Bitcoin Holdings to Become Third Largest Holder

By: Isha Das

Twenty One Capital, a prominent Bitcoin investment firm, has significantly bolstered its Bitcoin portfolio by receiving a substantial 5,800 BTC boost from stablecoin issuer Tether. This strategic inflow elevates the firm's total Bitcoin holdings to over 43,500 BTC, making it the third-largest corporate Bitcoin holder worldwide, trailing only Marathon Digital and Strategy, previously known as MicroStrategy. This move aligns with Twenty One Capital's forthcoming public listing and their mission to provide transparent Bitcoin exposure to investors.

Notably, Twenty One Capital aims to introduce a novel metric known as Bitcoin Per Share (BPS). This innovative metric will allow investors to assess the company’s performance directly in Bitcoin terms. Unlike traditional earnings-per-share models, BPS will offer a clear picture of the Bitcoin backing each fully diluted share, representing approximately 12,559 satoshis per share at launch. The firm emphasizes its commitment to Bitcoin-focused operations, free from legacy liabilities that may burden other traditional companies, presenting a unique value proposition to investors.

The company, supported by renowned entities such as Cantor Fitzgerald, Tether, and SoftBank, had initially announced its mission to accumulate Bitcoin when it launched in April. With the recent acquisition of BTC from Tether, the firm's Bitcoin holdings have surpassed early expectations, further highlighting its aggressive strategy in the competitive landscape of digital asset accumulation. This trend of expanding Bitcoin treasury is reflective of a broader market strategy initially popularized by Strategy, aiming to establish a firm foothold in the burgeoning world of digital currencies.

While critics express concerns over potential risks associated with substantial BTC accumulation by corporate entities, market analysts advocate that such strategies are not systemic risks. On the contrary, there is a growing perception that insufficient exposure to Bitcoin presents a greater risk, particularly as institutions continue to reduce Bitcoin's circulating supply at an accelerated rate. The approach taken by Twenty One Capital and other treasury-focused companies underscores the evolving dynamics in the cryptocurrency market as corporations vie to secure Bitcoin as a strategic reserve asset.