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"There's no free money forever": Twenty One Capital's new CEO warns the Bitcoin treasury playbook is dying

Twenty One Capital's new CEO, Raphael Zagury, said the firm's Bitcoin‑focused treasury strategy is losing its appeal and that mining and other cash‑generating businesses could provide better risk‑adjusted returns measured in Bitcoin.

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What happened

Twenty One Capital’s new CEO, Raphael Zagury, said the firm’s Bitcoin‑focused treasury strategy is losing its appeal and that mining and other cash‑generating businesses could provide better risk‑adjusted returns measured in Bitcoin.

Confirmed

Global impact / market context

If investors shift from holding Bitcoin to backing mining or cash‑producing operations, the demand for Bitcoin as a store of value could weaken, while capital may flow toward companies that earn revenue in fiat or other assets.

Analyst inference

The comment comes as many crypto funds have relied on holding Bitcoin to generate returns, but rising volatility, lower yields, and shifting investor sentiment have prompted a search for alternative income sources within the digital‑asset ecosystem.

Analyst inference

What to watch

  1. Changes in Twenty One Capital’s asset allocation, especially any reduction in Bitcoin holdings, could signal broader fund‑level rebalancing and influence peer strategies. Analyst inference
  2. Investment flows into Bitcoin mining firms or other crypto‑related cash‑generating businesses, indicating whether the sector is attracting new capital and how risk‑adjusted returns compare. Analyst inference
  3. Regulatory developments affecting mining profitability or the tax treatment of crypto‑generated cash, which could alter the attractiveness of these alternative strategies overall. Analyst inference

Affected assets

  • BTC — Bitcoin
  • STRIKE — Strike

Evidence