What to know:
- Twenty One Capital posts a $413.5M loss as Bitcoin holdings lose $401.5M in fair value.
- First-half losses reach $1.27B, with nearly $1.25B linked to its Bitcoin revaluations.
- New CEO Raphael Zagury plans acquisitions and Bitcoin-backed lending to grow revenue.
Twenty One Capital reported a $413.5 million net loss for the second quarter of 2026 after Bitcoin’s decline lowered the value of its holdings. A $401.5 million fair-value reduction accounted for most of the result, according to the company’s financial report.
The Bitcoin markdown represented about 97% of the quarterly loss. Other costs totaled roughly $12 million based on the reported figures.
Why Twenty One Capital Is Expanding Beyond Bitcoin
This development comes after a net loss of $859.7 million for the first quarter. The reason behind this loss was an $847.8 million reduction in the Bitcoin reserve. This information is contained in the SEC quarterly filing by the firm.
Also Read: Peter Brandt Flags $58K Bitcoin Price Scenario as ETFs Draw $865 Million
The net losses of Twenty One Capital Company totalled about $1.27 billion for the first half year period. Of this amount, almost $1.25 billion was due to decreased Bitcoin values according to both reporting periods.
The firm had a reserve of 43,514 BTC valued at $2.95 billion at the end of March. However, the reserve was worth $3.80 billion at the end of 2025. The cost basis of the reserve was $3.69 billion.
The valuation price dropped from $87,316 per coin as at Dec. 31 to $67,832 as at March 31. These fair-value losses did not translate to equal cash outflows since the firm kept all but one bitcoin.
The remaining one Bitcoin led to a gain of $3,180. Price rises in the future will offset past losses while price drops will lead to new losses.
Raphael Zagury joined Twenty One Capital as chief executive on July 20. The former director replaces Strike’s founder Jack Mallers, who decided to resign to concentrate on Strike.
The new CEO intends to make acquisitions of operating firms and start offering Bitcoin collateralized lending products. The strategy also comprises obtaining funding in debt and equity markets. These companies will generate income besides the variations of the treasury value.
Management also expects to grow its capital markets segment. Acquisitions would operate in the form of a holding company structure.
The firm earlier explored the combination with Strike and Bitcoin infrastructure provider Elektron Energy. Later, Strike quit the deal because Mallers left the role of chief executive.
How Tether’s Control and Debt Affect XXI Investors
Tether, Bitfinex, SoftBank, and Cantor Equity Partners were the initial investors of Twenty One Capital. The deal valued the firm at $3.6 billion and aimed at the reserve being larger than 42,000 BTC.
In May, Tether bought the whole share of SoftBank in the business. At that time, Bitcoin reserve was above 43,500 BTC before the business went public in December 2025.
Its stock trades on the New York Stock Exchange under the ticker XXI. On Aug. 11, its stock traded around $4.59, and Bitcoin is trading near $63,623.
According to the March 31 report, the company reported convertible notes totaling $484.4 million secured with 16,116 BTC. It also reported cash amounting to $114.1 million and net working capital of $117.9 million.
Management claimed that these assets can cover its expenses for a minimum of one year without any sales of Bitcoin. The shareholders have additional risks connected with corporate expenses, debts, and management decisions besides the price of Bitcoin.
Also Read: David Schwartz Challenges Bitcoin Knots as BIP-110 Branch Stalls
Be the first to comment