It seems there is no risk to Twenty One. Tether is a pure-profit-engine, and they are buying Bitcoin with profit, not by issuing debt like Strategy. And because Tether props up US debt, the US gov won't do anything to mess with it.

The "threat" to the model is that countries start allowing their citizens to hold and use foreign currency, have foreign bank accounts, and that the governments stop debasing their currency and start strict austerity.

Is this "boring"? Maybe? Maybe it's just a highly profitable non-US company trying to dump its cash into Bitcoin. Maybe it's no more interesting than Tesla buying Bitcoin.

But the synergy is interesting. Is it a feedback loop or a self-correction mechanism? The bigger Tether gets, the lower it drives bonds yields; lower bond yields lead to risk-on investing and lower government interest expense, both inflationary. Lower bond yields reduce profit for Tether. Twenty One gains investors in the risk-on environment. Then does Bitcoin price increasing in fiat terms reduce trust in government debt, driving up yield?

I agree owning your own coins is safest, but I'd like to understand the macro picture.