Twenty One Capital has a new CEO and a new strategy. Raphael Zagury took over on July 20, replacing founder Jack Mallers, who resigned to focus on Strike. Zagury's first major move: kill the premium-funded model that made the firm a Bitcoin proxy for institutional investors, and instead build real operating businesses around its 43,514 BTC hoard.
Why the premium model is dead
Zagury didn't mince words about the old approach. Issuing shares above net asset value to buy more Bitcoin is unsustainable, he said. As more companies copy the playbook, premiums will converge toward 1x — meaning the arbitrage that fueled the strategy disappears. Twenty One Capital had already seen its premium shrink this year, and Zagury argued the model was a ticking clock.
The new plan: operating businesses around Bitcoin
The firm is now pivoting to cash-generating operations. Zagury outlined three pillars: Bitcoin mining, Bitcoin-backed financial products, and a Bitcoin-native lending platform. He compared the potential cash flow to Berkshire Hathaway's insurance model — using float to generate returns — but acknowledged Twenty One hasn't built that yet. “Execution will be difficult,” he said, without offering a timeline.
The numbers: 43,514 BTC and no revenue
As of March 31, Twenty One Capital held 43,514 Bitcoin. It had zero operating revenue and posted a $10.57 million loss from operations. The new strategy is a bet that those idle coins can start earning yield through lending and mining, but the firm is starting from scratch. Zagury said matching Bitcoin's value with lower volatility would be a good result; beating BTC long-term would require either exceptional opportunities or irresponsible leverage.
What about Strike and Elektron?
Twenty One Capital is no longer pursuing a combination with Strike, the payments company Mallers now leads. A possible tie-up with Elektron Energy — a mining business that Zagury himself leads — remains preliminary, with no definitive agreement in place. For now, the focus is internal: turning a Bitcoin treasury into a real business.
