In preparation for its highly anticipated IPO, Bitcoin investment firm Twenty One Capital is slated to receive a substantial infusion of 5,800 BTC from stablecoin provider Tether, according to an announcement made on July 29.
This significant bitcoin acquisition will elevate the company’s total holdings to over 43,500 BTC, positioning it as the third-largest corporate holder of the cryptocurrency worldwide. This places them just behind Marathon Digital and MicroStrategy in terms of Bitcoin reserves.
Available data shows that over 4,700 BTC have already been transferred to Twenty One Capital’s digital wallet as of the time of this report. This influx raises their current holdings to 43,343 BTC, with an estimated value of $5.1 billion, according to on-chain data.
Bitcoin per share
To enhance transparency for investors, Twenty One Capital plans to introduce a new key performance indicator known as Bitcoin Per Share (BPS). This metric will represent the amount of Bitcoin backing each fully diluted share of the company.
Unlike the traditional earnings-per-share (EPS) models used by most firms, BPS will enable shareholders to directly monitor the company’s performance in Bitcoin terms.
The company indicated that they anticipate each share of the newly public entity to be backed by approximately 12,559 satoshis.
Furthermore, the firm emphasized its commitment to a clean balance sheet, free from legacy liabilities, aiming to provide investors with pure exposure to Bitcoin without the complications and risks associated with unrelated business operations.
Jack Mallers, CEO and co-founder of Twenty One Capital, stated:
“Twenty One represents a novel kind of publicly traded enterprise: constructed upon Bitcoin principles, supported by verifiable evidence, and driven by a vision to revolutionize the global financial landscape. Our mission extends beyond merely outperforming the existing system; we are dedicated to establishing an entirely new paradigm.”
Bitcoin treasury
Twenty One Capital’s strategy is aligned with the burgeoning trend of adopting Bitcoin treasury reserves, a strategy initially popularized by MicroStrategy.
According to data from Bitcoin Treasuries, over 100 publicly listed companies currently hold nearly 1 million Bitcoin on their balance sheets.
While this trend has gained momentum, some critics have voiced concerns regarding the potential risks associated with such aggressive accumulation of Bitcoin.
However, market analysts, like Joe Consorti, Head of Growth at Theya Bitcoin, have expressed disagreement with these anxieties.
Consorti contends:
“Bitcoin treasury companies do not constitute a systemic risk. Their approach involves prudent and calculated leverage, and they are still years away from reaching true widespread adoption. The more significant danger lies in being under-allocated to Bitcoin as institutions actively reduce the available supply at an ever-increasing rate.”