BTC Wealth Report – Issue 04

👋 Welcome to BTC Wealth – Issue 04

Here’s what we’re tracking this week

• 🏦 Bitcoin Treasury Companies — the story of the cycle

• 📊 ETF flows surge — Blackrock’s bought 43,600 BTC in 14 days

• The state-level reserve race — who’s most likely to get their first?

Let’s dig in.

🏦 The Bitcoin Treasury Cycle

A new wave of Bitcoin buying is here — and it’s coming from publicly traded BTC Treasury companies.

This week, MicroStrategy (now “Strategy”) doubled down, announcing a capital raise target of $42 billion via equity and $42 billion via fixed income to grow its BTC stack.

As I wrote on X: this might be the best business model in the world.

🧱 Strategy Copycats Are Coming

The newest entrant, Twenty One, is going public via SPAC merger with Cantor Equity Partners. Backed by Tether, Bitfinex, SoftBank, and led by Jack Mallers, its mandate is like the others: accumulate Bitcoin.

Unlike Strategy, which pivoted from its enterprise software roots in 2020 to become a Bitcoin-focused company , and Metaplanet, which transitioned from hotel operations to a Bitcoin investment strategy in early 2024 , Twenty One is built from scratch as a pure-play BTC treasury vehicle.

What’s surprising is that it took this long for real competition to arrive. Since launching its Bitcoin strategy in 2020, Strategy (MSTR) has 30x’d its stock price. You would expect that to attract fast followers and lots of attention.

Evidently that attention is here. Investors are now piling into CEP (Mallers’ company) — the SPAC is up 350% since the announcement.

📈 BTC Per Share Is the Real Metric

These companies have one play: grow BTC per share.
That’s done by:

• Selling equity at a premium to NAV

• Buying more Bitcoin

• Increasing BTC per share — even while diluting shareholder %

As long as the share price trades above NAV, they can keep stacking. It’s a reflexive flywheel.

🧠 Why These Companies Trade Above NAV

One of the biggest points of controversy around Bitcoin treasury companies is this:

Skeptics call it irrational - and temporary - but when you break it down, the premium reflects real advantages that spot Bitcoin doesn’t offer.

Here’s why these stocks often trade above NAV:

1️⃣ Liquidity Premium

Easiest way for TradFi allocators to get BTC exposure:

• No wallets, no custody

• Just type the ticker and buy

👉 That convenience commands a premium.

2️⃣ Volatility Premium

• Debt + NAV premium = amplified swings

• Traders love the volatility

• Better vehicles for derivatives, options, and structured products

👉 More volatility = more opportunity.

3️⃣ Bitcoin Yield Premium

Unlike ETFs, these companies grow your BTC per share.

• Sell shares above NAV

• Buy BTC

• Repeat

👉 Premium = growth = premium. It’s reflexive.

4️⃣ Future Potential Premium

Owning Bitcoin at scale opens doors.

• Structured BTC products

• Collateralized lending

• Treasury-backed rails

👉 The optionality has value — and price reflects it.

🧱 It’s Not a Ponzi — It just looks like one.

Critics love to say this model only works because “new investors keep buying.”
That’s technically true — but it’s also true for most financial assets.

The reality is: Bitcoin Treasury Companies are capital-raising machines.

Sound familiar? That’s exactly how equity in asset managers works.

• Fund managers grow AUM (assets under management)

• BTC treasuries grow BTC per share

• In both cases, capital raising is the business

The same dynamic applies to startups — where every VC bets the next round will be bigger. You also see it with traditional store of value assets like

🪙 Gold

🏘️ Real estate

₿ Bitcoin itself — where price depends on new marginal buying

If Bitcoin is the world’s hardest asset, this might be the most aggressive, shareholder-aligned engine to accumulate it.

And the market’s saying: it’s working.

🟠ETF Tracker: BlackRock Keeps Buying

Another big week for U.S. spot Bitcoin ETFs — with net inflows of 18,600 BTC.

🟢 BlackRock was the standout again, adding 26,000 BTC to its stack.
🔴 But not everyone’s buying:

• ARK sold 4,820 BTC

• Fidelity trimmed 2,180 BTC

Zoom out, and BlackRock’s dominance is even clearer:
They’ve now bought 43,600 BTC in just 14 consecutive trading days.

💡 Flows come in waves and we’re in one now

Since launch, U.S. ETFs have pulled in 552,000 BTC total — and flows are surging back toward all-time highs.

In 2024, flows were broad-based, but Blackrock is sucking up all the liquidity now.

When they all start buying again — that’s when Bitcoin rips.

🏛️ The Bitcoin Reserve Race: Arizona Flinched — But the Race Is On

This week, Arizona came this close to making history — becoming the first U.S. state to adopt Bitcoin as a strategic reserve asset.

But Governor Katie Hobbs got in the way.

She vetoed SB 1025, citing Bitcoin as an “untested investment” unsuitable for retirement funds. That decision likely dooms its companion bill, SB 1373, as well — at least for now.

Still, the story doesn’t end there.

Across the U.S., 28 states have introduced legislation to allocate public funds to Bitcoin. Some want to hold BTC directly.

So who’s going to get there first?

🥇 New Hampshire — The Frontrunner

New Hampshire’s HB 302 is now the most advanced Bitcoin reserve bill in the country.

The bill allows up to 5% of public funds to be invested in digital assets and precious metals. And thanks to a $500B market cap requirement, it’s effectively Bitcoin-only.

✅ Passed House (192–179)
✅ Passed Senate Ways & Means Committee (4–1)
🟡 Awaiting full Senate vote

🥈 North Carolina — Cautious but Credible

North Carolina’s HB 92 is ETF-only — limited to crypto assets with >$750B market cap (Bitcoin)

It’s cleared all House committees. A full vote could come soon.

✅ Advanced through committee
✅ Structured exposure only
🚫 Not yet voted on by full House
🚫 Governor’s stance unknown

🥉 Texas — The Wild Card

Texas is leading on quantity: six different bills. But quality matters.

One bill, SB 421, has moved into committee 2 — the rest are either stalled or in early review.

✅ Crypto-friendly governor (Greg Abbott)
✅ Huge economic weight
🚫 No single frontrunner bill
🚫 Legislative gridlock risk

🧯 Other States to Watch

• Alabama: Two bills (SB 283 / HB 482), early-stage but backed by State Auditor Andrew Sorrell.

• Florida: H0487 still under review — passed 18-0 by Insurance & Banking Subcommittee

🧱 Final thoughts

The Arizona veto is a setback — but this is a live policy debate now.

If even one state deploys real capital (1–10% of treasury funds), the precedent will be impossible to ignore.

New Hampshire could be first. But the race is on

That’s your BTC Wealth Report this week.

Thanks for reading.

- Thomas Fahrer