Twenty One Capital CEO Says Bitcoin Premium Strategy Alone Has Limits: ‘There’s No Free Money Forever’
JH Kim
Summary
- The Twenty One Capital CEO said Bitcoin asset managers would find it difficult to generate sustainable returns through premium-based investment strategies alone.
- He said the solution is to build businesses that generate cash from the company’s Bitcoin holdings, and that a model relying solely on premiums is not sustainable over the long term.
- He said “there’s no free money forever,” adding that premiums may return but should not be the only source of shareholder returns.
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Rafael Zagury, chief executive officer of Bitcoin investment firm Twenty One Capital, said Bitcoin asset managers will struggle to generate sustainable returns if they rely solely on premium-based investment strategies.
CryptoSlate reported on July 29 that the answer is to build businesses that generate cash from the company’s Bitcoin holdings. A model that depends only on premiums, or corporate valuations above net asset value, is not sustainable over the long term.
“There’s no free money forever,” he said. Premiums may reemerge, but they should not be the only source of shareholder returns.
JH Kim
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