Key facts
- Bitcoin treasury Twenty One posted a net loss of $413.5 million in Q2 2026.
- The loss was primarily due to a non-cash change in the fair value of its Bitcoin holdings.
- New CEO Raphael Zagury aims to evolve the company beyond its current Bitcoin treasury model.
- The company plans to develop a Bitcoin-backed lending/credit business and support Bitcoin developers.
- Twenty One holds 43,514 Bitcoin, valued at approximately $2.7 billion.
Bitcoin treasury Twenty One's new chief executive, Raphael Zagury, has signaled a strategic shift for the company, aiming to evolve it into an entity that offers more than just direct Bitcoin holdings. This announcement follows a challenging second quarter for 2026, during which the company reported a net loss of $413.5 million. The significant loss was largely attributed to a non-cash adjustment related to the fluctuating fair value of its substantial Bitcoin reserves.
Zagury, who assumed leadership in July, acknowledged shareholder concerns regarding the company's stock trading at a discount compared to its underlying Bitcoin assets and the perceived slow pace of business development. In a letter to shareholders, he reassured them that efforts are underway to fill key operational roles and that concrete actions will address these issues.
The company's strategy includes building a conservatively leveraged Bitcoin-backed lending and credit business, alongside providing unconditional support for Bitcoin developers. Zagury emphasized that Twenty One is not a direct substitute for owning Bitcoin itself, but rather aims to "earn the right to be something different" by creating value around the Bitcoin ecosystem.
Twenty One, which was established through a SPAC merger with an affiliate of Cantor Fitzgerald, holds the second-largest public Bitcoin treasury, with 43,514 coins valued at approximately $2.7 billion at current prices. The company was founded with backing from entities including Tether, Bitfinex, Cantor Fitzgerald, and SoftBank. The broader trend of companies accumulating Bitcoin, which surged last year, has seen many firms, including Strategy (formerly MicroStrategy), experience stock price declines as cryptocurrency markets have cooled since October. Even Strategy has reportedly sold portions of its Bitcoin holdings to bolster its cash reserves.