Twenty One Capital holds approximately 43,000 Bitcoin but trades at a market discount, according to CEO Rapha Zagury. In a recent interview, Zagury addressed how the company calculates its modified net asset value (mNAV) and explained his reservations about using this metric for an operating company. He also discussed the potential for share buybacks to address the valuation gap.
Zagury highlighted that Tether’s backing provides Twenty One with permanent capital, creating a structural edge over other treasury companies. The discussion covered the firm’s five pillars, acquisition criteria for Bitcoin targets, and plans to build a Bitcoin capital markets and energy trading arm. Zagury also noted Bitcoin’s strength relative to gold amid macro uncertainty and identified institutions as the next major buyers of the asset.
The reliance on Tether’s backing for permanent capital distinguishes Twenty One Capital from competitors who may depend on more volatile funding sources or debt structures. This institutional support allows the firm to maintain its 43,000 BTC position without forced liquidation pressures during market downturns, potentially stabilizing its balance sheet compared to leveraged treasury models.
Zagury’s skepticism toward mNAV as a primary metric for an operating company suggests a strategic shift toward valuing operational cash flows and diversified revenue streams, such as the planned energy trading arm. Investors should monitor whether the proposed share buybacks effectively narrow the 30% discount mentioned in the source, as this action would signal management’s confidence in intrinsic value exceeding current market pricing.
