According to Twenty One Capital's second-quarter financial report, the company posted a $413.5 million net loss for the second quarter of 2026. A $401.5 million decline in the value of its Bitcoin holdings accounted for most of the quarterly deficit, representing approximately 97% of the total loss. The remaining expenses accounted for roughly $12 million, based on the figures in the company's report, though the source did not provide a complete breakdown of those costs. As reported by multiple sources, the company stated that bitcoin price swings directly affected its financial results because it uses BTC as a core asset allocation strategy. The pattern echoes the first quarter of 2026, where Twenty One reported an $859.7 million net loss for the three months ended March 31, with an $847.8 million decline in the fair value of its Bitcoin holdings causing most of that loss.
As reported by Twenty One Capital's SEC quarterly filing, the company held 43,514 BTC with a reported fair value of $2.95 billion as of March 31, down from $3.80 billion at the end of 2025. The cost basis for the holdings stood at about $3.69 billion, while the price used to value each coin fell from $87,316 on December 31 to $67,832 on March 31. At current prices, that same holding is worth roughly $2.78 billion, according to The Block, still making Twenty One the second-largest publicly traded bitcoin treasury — a position increasingly contested by Japan's Metaplanet, which holds approximately 43,000 BTC. Combined, the first two quarters of 2026 have produced reported net losses of approximately $1.27 billion, with roughly $1.25 billion of that tied directly to the lower accounting value of Twenty One's bitcoin rather than to cash outflows. The company's Bitcoin holdings have declined significantly in value, with Bitcoin falling from $87,316 at the start of 2026 to $58,605 by June 30, as reported in the company's 10-Q filing.
According to reports from Twenty One Capital, new CEO Raphael Zagury, who took over from Strike founder Jack Mallers on July 20, has outlined plans to develop businesses beyond holding Bitcoin. In his first shareholder letter, Zagury laid out five priorities: strengthening governance, building or acquiring operating businesses, developing capital-markets capabilities, establishing an M&A function, and eventually launching a bitcoin-backed lending and credit business. "Twenty One owns one of the largest Bitcoin balance sheets in the public markets," he wrote, according to The Block, "That is a real advantage, but if Twenty One is going to be worth owning, it must become more than a Bitcoin treasury." Zagury cited Berkshire Hathaway as a model for the diversified structure he envisages, while conceding the company has "earned nothing yet" beyond its bitcoin holdings. He also acknowledged investor concerns over the stock's discount to net asset value, writing that "that gap could be viewed as a misallocation of capital; we share that view." A possible acquisition of Elektron Energy, a bitcoin miner also led by Zagury, was reported to be under consideration. The letter caps a turbulent first year in public markets, with Tether taking full control of XXI in May by buying out SoftBank, and founder Jack Mallers resigning as CEO in July.
Twenty One Capital trades on the New York Stock Exchange under the ticker XXI, giving U.S. investors stock-based exposure to the company's Bitcoin holdings. The company ended the quarter with $106.1 million in cash and roughly $484.5 million of convertible notes outstanding. As of the latest reporting period, the shares were trading near $4.53, having risen about 1% in early Tuesday trading but remaining down roughly 85% from its 52-week high of $30.43. The enterprise mNAV of 0.7x means the market currently values the company at a material discount to the bitcoin it holds, according to data from Bitcoin Treasuries. The NYSE had warned the company about governance issues after SoftBank's representatives left the board following Tether's acquisition, but Twenty One appointed an independent director on June 8 to address these concerns. New independent directors Paul Lalljie and Karl Olsoni now sit on the board, with Lalljie chairing the audit committee. Zagury pledged to handle any deals with Tether strictly and transparently, and also promised a fuller strategy update before year-end.
