Twenty One Capital posts Q2 loss as CEO expands strategy beyond bitcoin treasury

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Twenty One Capital Q2 loss

Highlights

Twenty One Capital reported a $413.5 million Q2 net loss, with $401.5 million due to changes in the value of its 43,514 bitcoin holdings.
CEO Raphael Zagury, replacing Jack Mallers, outlined five 2024 priorities including operating business acquisitions, capital-markets expansion, and developing a bitcoin lending and credit platform.
Twenty One shares trade at an enterprise mNAV of 0.7x, reflecting a material discount to its bitcoin holdings amid pressure to diversify beyond treasury functions.

Quarterly loss and strategic reset

The Block reported that Twenty One Capital posted a $413.5 million net loss in the second quarter, with $401.5 million of that total stemming from changes in the value of its digital asset holdings. The NYSE-listed company holds 43,514 bitcoin valued at about $2.78 billion at current prices, making it the second-largest publicly traded bitcoin treasury, while Japan-based Metaplanet nears that position with 43,000 BTC.

Twenty One ends the quarter with $106.1 million in cash and about $484.5 million of convertible notes outstanding. The results arrive about three weeks after Raphael Zagury replaces founder Jack Mallers as CEO, with Mallers stepping down to refocus on bitcoin payments company Strike.

The leadership reshuffle also sees Strike exit a proposed merger with Twenty One, while the company considers a potential acquisition of bitcoin miner Elektron Energy, led by Zagury. In his first shareholder letter as chief executive, Zagury says the company must prove it can become more than a bitcoin treasury despite the scale of its balance sheet.

Investor discount and growth priorities

Zagury lays out five priorities for the year ahead, including stronger governance, building or acquiring operating businesses, developing capital-markets capabilities, establishing M&A operations, and eventually launching a bitcoin lending and credit business. He points to Berkshire Hathaway as a model, describing a structure built around a strong balance sheet and independently run businesses that generate cash flow.

He also acknowledges investor concerns over valuation, saying the stock trades at a material discount to the bitcoin it holds. That gap is reflected in Twenty One's enterprise mNAV, which compares company valuation with the value of its bitcoin holdings and currently stands at 0.7x, according to Bitcoin Treasuries.

Zagury says Twenty One has "earned nothing yet," underscoring the pressure to convert its large bitcoin position into a broader operating platform. The strategy signals an effort to shift the company toward a more diversified bitcoin-focused business model as competition among listed bitcoin treasury firms intensifies.

Our earlier article on Trump Media & Technology Group’s second-quarter results detailed how the company’s loss widened sharply, largely due to markdowns and volatility tied to its digital-asset and related holdings. We also noted that, alongside weak operating revenue, TMTG is trying to build a higher-value business through its Truth API service, which has signed more than 10 customer agreements, mainly with high-frequency trading firms.

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