Twenty-One Capital Posts $413.5 Million Net Loss Amid Falling Bitcoin Holdings
#### Standfirst
Twenty-One Capital, a Tether-backed firm, reported a net loss of $413.5 million in the second quarter, primarily due to declines in the value of its bitcoin holdings. New CEO Raphael Zagury outlined plans to transform Twenty-One into a larger-scale bitcoin operating company.
In the report, Twenty-One’s financials indicate a loss from digital asset holdings totaling $401.5 million, accounting for 97% of the overall net loss. The firm currently holds approximately 43,514 BTC worth around $2.78 billion at current market prices. Additionally, the company possesses $106.1 million in cash and convertible notes valued at $484.5 million.
Commenting on the situation, Zagury noted, “Twenty-One owns one of the largest Bitcoin balance sheets in the public markets,” emphasizing that this represents a significant advantage for the firm. However, he stressed the need to transform Twenty-One into more than just a Bitcoin treasury to justify its value proposition. Regarding investors’ concerns about valuation, Zagury said, “That gap could be viewed as a misallocation of capital; we share that view.”
Future plans for acquisitions or mergers with other entities such as Elektron Energy remain under consideration, though no definitive decisions have been made.
Written by James Tobias
Bitcoin Desk
