Twenty One Capital, the Tether-backed Bitcoin treasury company listed on the NYSE (XXI), reported a net loss of $413.5 million for the second quarter of 2026, driven predominantly by the declining value of its massive Bitcoin holdings. A $401.5 million loss from the revaluation of digital assets accounted for over 97% of the total deficit, according to the company’s financial report.
The firm holds 43,514 BTC, worth approximately $2.78 billion at current prices, making it the second-largest publicly traded Bitcoin treasury. However, Japan-based Metaplanet is closing the gap with 43,000 BTC. The Q2 loss follows a staggering $859.7 million net loss in Q1, when an $847.8 million Bitcoin valuation decline was recorded. Across the first half of 2026, reported net losses sum to roughly $1.27 billion, with nearly $1.25 billion stemming from accounting write-downs on Bitcoin holdings—largely unrealized and not reflecting cash outflows.
Despite the red ink, Twenty One’s stock rose about 1% on Tuesday to $4.62, though shares remain down nearly 50% year-to-date. The company ended Q2 with $106.1 million in cash and approximately $484.5 million in convertible notes outstanding.
Newly appointed CEO Raphael Zagury, who took over from Strike founder Jack Mallers on July 20, acknowledged investor concerns in his first shareholder letter. He stressed that while Twenty One holds one of the largest Bitcoin balance sheets in public markets, it must evolve into an operating company that generates cash flow. Zagury outlined five strategic priorities: strengthening governance, building or acquiring operating businesses, developing capital-market capabilities, establishing M&A operations, and eventually launching a Bitcoin lending and credit business. He pointed to Berkshire Hathaway as a blueprint.
The leadership shakeup also saw Strike drop out of a previously proposed merger, while a potential acquisition of the Bitcoin miner Elektron Energy, which Zagury helped lead, remains under consideration. Zagury noted that Twenty One shares trade at a material discount to the Bitcoin it holds—reflected in an enterprise mNAV of 0.7x—calling the gap a potential capital misallocation that management shares a view on.
Twenty One Capital debuted publicly in December 2025 after a launch plan valued at $3.6 billion involving contributions from Tether, Bitfinex, SoftBank, and others. Tether later acquired SoftBank’s full interest, consolidating its control. The company continues to face governance scrutiny after an NYSE warning regarding audit committee independence, which was resolved with a new independent director appointment in June.
