“There’s no free money forever”: Twenty One Capital’s new CEO warns the Bitcoin treasury playbook is dying

Raphael Zagury, the newly appointed CEO of Bitcoin-focused public company Twenty One Capital, says the premium-funded model behind Bitcoin treasury firms cannot provide easy returns forever. His answer is to build cash-generating businesses around the company’s BTC balance sheet.In a July 22 fireside chat furnished to the SEC, Zagury described issuing shares above the net asset value of a company’s Bitcoin holdings and using the proceeds to buy more BTC as a temporary market dislocation. As more companies copy the strategy, he said, their market-value premiums should converge toward 1x.“There’s no free money forever,” Zagury said. The premium could return, he added, but it should not remain the only source of shareholder returns.Twenty One had already outlined an operating-company model in May. Its refreshed priorities now include buying or building operating businesses, expanding capital-markets capabilities, developing Bitcoin-backed financial products and creating a Bitcoin-native lending platform. Prospective acquisitions must be accretive when measured against Bitcoin.The shift coincides with a leadership reset. Zagury became CEO effective July 20 after Jack Mallers resigned a...