This episode explores the emergence of Twenty One Capital, a new Bitcoin holding company formed by Tether, SoftBank, and Cantor Fitzgerald, and its implications for the cryptocurrency market. Against the backdrop of MicroStrategy's pioneering Bitcoin treasury strategy, the panelists analyze Twenty One's potential approaches, including active Bitcoin management and the development of Bitcoin-based financial products. More significantly, the discussion delves into the strategic motivations of the key players, highlighting Tether's diversification efforts amidst potential regulatory changes, SoftBank's pursuit of global growth opportunities, and Cantor Fitzgerald's role in bridging TradFi and crypto. For instance, the panelists debate the significance of new metrics like Bitcoin per share (BPS) and Bitcoin return rate (BRR) in evaluating the company's performance. In contrast to MicroStrategy's focus on liability-side financial engineering, Twenty One emphasizes asset-side strategies, potentially leveraging Bitcoin's utility beyond a simple store of value. The conversation concludes by considering the implications of this new model for the broader crypto landscape, including the potential for similar ventures using other cryptocurrencies and the role of volatility in driving investment decisions. What this means for the future of Bitcoin-focused equities is a complex interplay of financial strategy, regulatory environment, and investor sentiment.
