Twenty One's newly appointed CEO, Raphael Zagury, has moved to reassure shareholders that the company will evolve into "more than a Bitcoin treasury" following mounting investor concerns over its stock performance and strategic direction.

The remarks came in a Tuesday letter to shareholders, issued shortly after the company — which holds the second-largest public Bitcoin treasury — reported its Q2 2026 earnings. Twenty One posted a net loss of $413.5 million for the quarter, driven almost entirely by a non-cash "change in fair value" of its BTC holdings under mark-to-market accounting rules, meaning no actual Bitcoin was sold at a loss.

Bitcoin treasury companies have endured a difficult 2026 as Bitcoin's price has fallen sharply. The cryptocurrency has declined approximately 50% since reaching an all-time high of $126,080 in October, weighing on the share prices of firms with significant BTC exposure.

— Rapha Zagury (@RaphaZagury) August 11, 2026

"Twenty One owns one of the largest Bitcoin balance sheets in the public markets. That is a real advantage, but if Twenty One is going to be worth owning, it must become more than a Bitcoin treasury," wrote Zagury, who assumed the CEO role in July, succeeding Jack Mallers.

Zagury acknowledged that investors had expressed concern about the stock trading at a discount to the value of the Bitcoin it holds — meaning the market currently values Twenty One at less than the worth of its BTC alone, effectively pricing the company's operations and strategy at a negative premium. For Bitcoin treasury companies, such discounts cut at the core of the model: firms like Strategy have historically relied on their shares trading above net asset value to issue equity or debt and accumulate more Bitcoin.

"That work has started: searches for key operating roles are underway," he wrote. "Ultimately, actions, not words, will address these concerns and move the company forward."

Zagury outlined several strategic priorities, including the development of a conservatively leveraged Bitcoin-backed lending and credit business, as well as support for Bitcoin developers on a "no-strings-attached" basis.

"I will finish with this: Twenty One is not a substitute for Bitcoin," Zagury stated. "Investors who want pure Bitcoin exposure should understand that Bitcoin itself is the cleanest expression of that view. Twenty One must earn the right to be something different: a way to own the build around Bitcoin."

Twenty One was formed through a partnership involving Tether, Bitfinex, Cantor Fitzgerald, and SoftBank — though SoftBank is no longer part of the project. The company launched last year via a SPAC merger with Cantor Equity Partners, a blank-check company affiliated with financial services firm Cantor Fitzgerald.

According to Bitcointreasuries.net, Twenty One holds the second-largest public Bitcoin treasury, with a total of 43,514 coins — valued at approximately $2.7 billion at Bitcoin's current price of $63,464.

The broader Bitcoin treasury trend accelerated last year as public companies sought to boost their share prices by accumulating Bitcoin and other cryptocurrencies. Modeled on the approach of software firm Strategy (formerly MicroStrategy), these companies have seen their stock prices decline amid a crypto market sell-off that began in October. Strategy, the largest corporate Bitcoin holder, has even sold portions of its holdings to build a cash buffer.

In July, Twenty One announced plans to adopt a model inspired by Berkshire Hathaway: building and acquiring high-quality operating businesses that "leverage Twenty One's balance sheet while maintaining disciplined capital allocation at the parent company and create a long-term ownership model inspired by Berkshire Hathaway."

Twenty One's stock (NYSE: XXI) declined more than 1% on Tuesday and is down over 50% year-to-date.