Why Twenty One Capital Is More About Volatility Than Bitcoin - Ep. 826
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I think it's a common misunderstanding that investors of strategy cares about earnings at all, actually. I think they don't care about earnings. And we're gonna see it again with strategy reporting very soon. The stock does. But actually, the volatility of strategy and the stocks never react to earnings in the ways you see it with companies and the question of how they're gonna monetize it. It is likewise the case that I think those who are buying today CEP at 3x the premium are buying something else. And what they're buying isn't an earnings monetization scheme, they're buying a volatility mo
everyone. Welcome to Unchained, your no high resource for all things crypto. I'm your host, Laura Shin. Every episode, we're featuring listener comments. Today, we have comments responding to my recent interview with Van X, Matthew Siegel, on the launch of 20 one and his pitch for a bit bonds. On Farcaster, Ispek de Lacione writes, quote, leverage on Bitcoin could be one of the biggest risks of the asset. On X, Christine Lee says, quote, Matt is clever. Reminds me of the Swiss National Bank, which says it won't buy Bitcoin, but owns shares of MSTR, Tesla, and Mara. Perfect Bitbond buyer. Do yo
Happy to be here, Laura. Thanks for having us.
So Tether, along with Bitfinex plus SoftBank, will be launching this new company with Cantor Equity Partners, and it'll be called twenty one Capital, and it will follow in the steps of MicroStrategy and be a Bitcoin holding company. Its goal will be to increase its Bitcoin per share, BPS. This is a new metric they're introducing. We'll also track its Bitcoin return rate or BRR, which is the rate at which its BPS grows. At launch, it will have 42,000 Bitcoin, which, around the time of the announcement was about $4,000,000,000, and that will no. Actually, they've already been added to the Bitcoi
Well, my first thought was, this is incredible. And I mean that in the most literal sense because the players that are interesting dynamics across the world that is coming into play with Bitcoin at the center of it. And so there's a political element to it. There's an economic element to it. There's a capital element to it. And then there's a social capital element to it as well outside of the financial capital that is coming into to play with Jack Mallers at the helm. And so to me, it just represented this incredible cultural moment where a lot of intergenerational forces across all parts of
what did you think? I
viewed it as a validation of what Michael Saylor did at MicroStrategy, now strategy over the last, five years. The concept of tapping the capital markets and then using the proceeds to buy Bitcoin, and then to do that repeatedly using different capital market instruments over time, was considered to be, you know, insane by a lot of people when Michael Saylor proposed this back in the middle of twenty twenty. Now we're seeing copycats, not only in Bitcoin, but in other cryptocurrencies, doing effectively the same thing. What the new players have is the benefit of seeing some of the learnings, I
The other thought that I had was, I, you know, I should have looked this up before, but I'm pretty sure this was, like, kind of winter twenty twenty, twenty twenty one. But they had tha
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