Twenty One Aims to Buy as Much Bitcoin as Possible. Can It Succeed? - Ep. 824
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The more of these that you have at a % of their assets, the bigger chance there is for some number of them to blow up. On the other side, if bitcoin really moons, then these are your next bitcoin banks and they could end up with enormous balance sheets. So it's a high risk endeavor.
Hi, everyone. Welcome to Unchained, your no hype resource for all things crypto. I'm your host, Laura Shin. Every episode, we spotlight quotes from listeners. Today, we have a comment responding to my recent interview with Emily Parker and Yat Siu on how Asia's crypto communities view Trump's embrace of crypto. On YouTube, name I seven w says, quote, really good discussion and insights into various Asian markets. Thank you. It's always bemused me how little awareness a lot of people, probably generalizing Americans here a bit in particular, about foreign markets. Much of it seems to be reduced
Laura.
The Bitcoin world was excited this week about a new venture involving Tether, SoftBank, and an affiliate of Cantor Fitzgerald. Tell us what they're planning.
Well, I think this is a continuation of the theme over the last year where just an accelerating number of public companies are following the micro strategy model and holding Bitcoin. In fact, through the March, the year over year increase in Bitcoin held by corporations actually exceeded that of the ETFs. So there's now more than a hundred firms, and I think that folks are looking enviously at MicroStrategy's premium to its Bitcoin holdings and trying to duplicate that across different markets. I guess what's notable about this one, the SoftBank Tether effort, is that it's in The US market. So
Okay. Yeah. And this venture will be called twenty one. And as you mentioned, their goal will be to try to acquire as much Bitcoin as possible. And as the new CEO, Jack Mallers mentioned, their goal would be to acquire more Bitcoin per share over time. You know, right now, they're gonna be launching with fifth 42,000 Bitcoin, which is about $3,900,000,000 at today's prices. What are the other various ways that twenty one could acquire more Bitcoin?
I think they're gonna pretty much follow the same micro strategy playbook, which is to issue convertible debt or straight debt as well as more shares in the firm. And as long as the value of the stock is trading at a premium to their Bitcoin held, then they can do that accretively so that their Bitcoin can grow faster than their share count. So if you look at all of these hodlers, we're tracking, you know, 10 or so of various market caps. They tend to trade, you know, between a 20% premium to the Bitcoin that they hold and and a % or so. MicroStrategy is at the high end of that, and the secret
Well, you know, so first of all, the the press release actually does, suggest at least that they might try to creatively leverage their holdings to acquire Bitcoin as quickly as possible. And so, you know, you're right. Maybe we don't know all the details, but if they were to try to do that, what would you say would the risks be there or the opportunities? As
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