Twenty One Capital says buyers worth its shares beneath its Bitcoin holdings at the same time as 37% of the treasury stays pledged towards debt.
On Aug. 11, the corporate’s CEO Raphael Zagury advised shareholders that XXI was buying and selling at a “materials low cost” to the Bitcoin it holds, describing the hole as a possible misallocation of capital.
The corporate’s second-quarter SEC submitting reveals why that comparability is extra difficult than its headline Bitcoin steadiness.
Twenty One held 43,514 BTC as of June 30, however 16,116 BTC safe $486.5 million of 1% convertible notes due in 2030 and can’t be used for common company functions or liquidity whereas pledged.
At Bitcoin’s present value close to $63,700, the treasury is price roughly $2.77 billion, in contrast with an fairness worth of about $1.56 billion based mostly on XXI’s Aug. 11 shut.
That places the inventory roughly 44% beneath the gross worth of its Bitcoin. Nonetheless, the comparability excludes the liabilities hooked up to that steadiness sheet. Including Twenty One’s $106.1 million of money and subtracting the $486.5 million word principal produces a simplified internet worth of about $2.39 billion, narrowing the implied low cost to roughly 35%.
In the meantime, the pledged BTC doesn’t seem to create an instantaneous liquidity drawback. Twenty One mentioned it doesn’t count on to promote any Bitcoin acquired when its enterprise mixture closed in the course of the subsequent 12 months to fund liquidity wants.
Nonetheless, the corporate left open the potential of Bitcoin gross sales in distinctive circumstances, together with operational necessities, regulatory obligations, strategic investments, or different company functions.
This revelation comes as the corporate reported a $1.27 billion internet loss for the primary half of 2026, pushed overwhelmingly by a $1.25 billion decline in Bitcoin’s honest worth.
Twenty One Capital needs to turn into greater than a Bitcoin treasury
The valuation hole issues as a result of Zagury needs Twenty One to turn into greater than a treasury automobile.
In his shareholder letter, he said:
“Twenty One owns one of many largest Bitcoin steadiness sheets within the public markets. That may be a actual benefit, but when Twenty One goes to be price proudly owning, it should turn into greater than a Bitcoin treasury.”
To attain this purpose, he outlined plans to construct or purchase working companies, increase capital-markets capabilities, and develop Bitcoin-backed lending and credit score merchandise.
Zagury added that the corporate in the end must generate constructive money move round its Bitcoin steadiness sheet.
Nonetheless, execution of its long-term targets stays restricted. Twenty One mentioned July 21 that it was not pursuing Strike, one in every of two potential acquisitions recognized earlier this yr, whereas its broader working, M&A and credit score plans stay underneath growth.
Twenty One due to this fact faces a two-part take a look at: closing the low cost buyers apply to its Bitcoin whereas proving companies constructed across the treasury can justify worth past the cash themselves.
