Twenty One Capital reported a net loss of $413.5 million for the second quarter of 2026, driven primarily by a decline in the value of its Bitcoin holdings. According to the company's SEC quarterly filing, a $401.5 million fair-value reduction on its Bitcoin reserves accounted for approximately 97% of the quarterly loss, with remaining costs totaling roughly $12 million. Under fair-value accounting rules adopted for crypto assets held on corporate balance sheets, companies like Twenty One Capital must reprice their Bitcoin holdings to market each quarter, producing non-cash gains or losses that swing reported earnings even when no coins are sold — a dynamic also seen at other publicly traded Bitcoin treasury firms such as MicroStrategy.

The Q2 results follow a first-quarter net loss of $859.7 million, which included an $847.8 million reduction in the Bitcoin reserve. Combined, Twenty One Capital posted approximately $1.27 billion in net losses for the first half of 2026, with nearly $1.25 billion attributable to declining Bitcoin valuations across both reporting periods.

At the end of March, the firm held 43,514 BTC valued at $2.95 billion, down from $3.80 billion at the end of 2025. The cost basis of the reserve stood at $3.69 billion. Per-coin valuation dropped from $87,316 on December 31 to $67,832 on March 31. These fair-value losses did not result in equivalent cash outflows, as the company retained all but one of its bitcoins — the single disposed coin produced a gain of $3,180.

Leadership Change and Strategic Shift

Raphael Zagury assumed the role of chief executive officer on July 20, replacing Strike founder Jack Mallers, who stepped down to focus on Strike. The leadership transition was announced by Mallers on X.

Under Zagury's direction, Twenty One Capital plans to diversify its revenue streams beyond its Bitcoin treasury. The strategy includes acquiring operating companies through a holding company structure and launching Bitcoin-collateralized lending products. Management also intends to expand the firm's capital markets segment and raise funding through both debt and equity markets. The acquired companies would generate operating income independent of treasury value fluctuations, a shift that would reduce the firm's reliance on Bitcoin price appreciation as the sole driver of shareholder returns.

The firm had previously explored a combination with Strike and Bitcoin infrastructure provider Elektron Energy. Strike subsequently withdrew from the deal following Mallers' departure as CEO.

Tether's Control and Investor Risk Profile

Tether, Bitfinex, SoftBank, and Cantor Equity Partners were the initial investors in Twenty One Capital, with the deal valuing the firm at $3.6 billion and targeting a reserve exceeding 42,000 BTC. In May, Tether acquired SoftBank's entire stake in the company. At that time, the Bitcoin reserve exceeded 43,500 BTC ahead of the firm's public listing in December 2025. Tether's consolidation of ownership means the stablecoin issuer — itself the operator of the largest USD-pegged stablecoin by market capitalization — now holds decisive influence over a publicly traded Bitcoin treasury vehicle, concentrating governance in an entity already central to cryptocurrency markets.

Twenty One Capital trades on the New York Stock Exchange under the ticker XXI. On August 11, shares traded around $4.59, while Bitcoin was priced near $63,623.

According to the March 31 report, the company held convertible notes totaling $484.4 million secured by 16,116 BTC, along with $114.1 million in cash and $117.9 million in net working capital. Management stated that these assets are sufficient to cover operating expenses for at least 12 months without requiring any Bitcoin sales.

Beyond Bitcoin price exposure, shareholders face additional risks tied to corporate expenses, debt obligations, and management decisions.