In the second quarter, Twenty One Capital, supported by Tether, reported a net loss of $413.5 million attributed to market corrections in the cryptocurrency sector. Following this development, the new CEO, Raphaël Zagury, expressed his vision of evolving the company from a Bitcoin treasury into a more expansive organization.
— Rapha Zagury (@RaphaZagury) August 11, 2026
Documents reveal that a reevaluation of digital assets led to a staggering $401.5 million loss, making up 97% of Twenty One's total losses for the reporting period. The firm still holds 43,514 BTC, valued at approximately $2.78 billion, positioning it as the second-largest public holder of the leading cryptocurrency.
Source: BitcoinTreasuries.By the end of the quarter, the company reported $106.1 million in cash and $484.5 million in convertible bond debt.
Following the latest trading session, XXI shares fell by 1.7%, bringing the price down to $4.5. Since the beginning of the year, the stock has plummeted nearly 50%.
Source: Yahoo Finance.Future Plans
This report comes three weeks after a leadership change, where founder Jack Mallers stepped down from the CEO position to focus on his payment project, Strike.
I've decided to step down as CEO of Twenty One.
This wasn't an easy decision, but it was the right one. This experience brought tremendous clarity about who I am and what I want to build.
My life's work remains Bitcoin. My Bitcoin company is @Strike.
The work continues. pic.twitter.com/L70YFYPt11
— Jack Mallers (@jackmallers) July 21, 2026
As part of the management restructuring, Strike has also abandoned plans to merge with Twenty One. Currently, the company is considering acquiring the mining firm Elektron Energy, previously led by Zagury.
In a letter to shareholders, the new CEO acknowledged the concerns regarding the company’s performance. He stated that Twenty One "must prove it can create value beyond merely holding the leading cryptocurrency."
"We have one of the largest Bitcoin balances in the public market. This is an advantage, but for the company to be worthwhile to own, it must become more than just a Bitcoin treasury," Zagury wrote.
Among his main priorities for the upcoming year, Zagury highlighted the following:
- strengthening corporate governance;
- creating or acquiring operational businesses;
- developing capital market competencies;
- establishing merger and acquisition processes;
- launching a lending business backed by Bitcoin—his ultimate goal.
Zagury cited Berkshire Hathaway as a long-term model, emphasizing a robust balance sheet combined with independent operating companies that generate cash flow.
He also addressed the issue of undervaluation, noting that investors believe the company’s shares are trading at a significant discount compared to the value of its Bitcoin assets. The current mNAV stands at 0.7x.
It is worth mentioning that in July, Bloomberg estimated that corporate digital treasuries lost billions due to the decline in the price of the leading cryptocurrency.