Twenty One Capital posted a $413.5 million net loss for the second quarter of 2026, driven mostly by a drop in the value of its bitcoin holdings. New CEO Raphael Zagury used his first shareholder letter to lay out plans to turn the company into more than a bitcoin treasury, adding acquisitions, capital-markets work, and bitcoin-backed lending.
Twenty One Capital reported a $413.5 million net loss for the second quarter as falling bitcoin prices weighed on its balance sheet. The NYSE-listed company recorded a $401.5 million loss from changes in the value of its digital asset holdings, which made up more than 97% of the total loss.
The Tether-backed firm still holds 43,514 bitcoin worth roughly $2.78 billion at current prices, ranking as the second-largest publicly traded bitcoin treasury, though Japan-based Metaplanet is closing the gap with 43,000 BTC. Twenty One ended the quarter with $106.1 million in cash and roughly $484.5 million of convertible notes outstanding.
Shares rise despite the losses
Twenty One shares rose about 1% to $4.62 during the first hour of trading Tuesday, though the stock remains down nearly 50% year-to-date.
Twenty One posted an $859.7 million net loss in the first quarter, with an $847.8 million bitcoin valuation decline behind most of it, according to crypto.news. Combined, the first two quarters produced net losses of about $1.27 billion, nearly $1.25 billion of it tied to bitcoin's falling accounting value.
New CEO plots a path beyond bitcoin
The results come roughly three weeks after Raphael Zagury replaced founder Jack Mallers as CEO, with Mallers stepping down to return his focus to his bitcoin payments company, Strike. The leadership change also saw Strike drop out of a proposed merger with Twenty One, while a potential acquisition of Zagury-led bitcoin miner Elektron Energy was under consideration.
In his first shareholder letter, Zagury acknowledged concerns over the company's performance and said it needs to prove it can create value beyond holding bitcoin. According to The Block: "Twenty One owns one of the largest Bitcoin balance sheets in the public markets" He outlined five priorities: strengthening governance, building or acquiring operating businesses, developing capital-market capabilities, establishing an M&A operation, and eventually launching a bitcoin lending and credit business.
Stock trades at a discount to its bitcoin
Zagury also addressed the company's depressed valuation, saying investors have pointed out the stock trades at a material discount to the bitcoin it holds. That gap shows up in Twenty One's enterprise mNAV, which currently stands at 0.7x according to Bitcoin Treasuries.
Sources: The Block, crypto.news
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