Twenty One Capital’s new CEO opened his first shareholder letter by agreeing along with his harshest critics. Rapha Zagury admitted the market values XXI at lower than the Bitcoin it owns, and mentioned administration sees it the identical approach.
The confession landed Tuesday subsequent to a painful quantity. The corporate misplaced $413.5 million within the second quarter, three weeks into Zagury’s tenure as chief government.
Why Twenty One Capital Trades Under Its Bitcoin
The maths behind the grievance is easy and brutal. XXI holds 43,514 BTC, a stack value about $2.8 billion with Bitcoin (BTC) buying and selling close to $63,555. But all the firm sells for roughly $1.6 billion.
In plain phrases, patrons pay about 57 cents for each greenback of Bitcoin inside. Bitcoin Treasuries knowledge places the hole at 0.70x even after counting debt and money. Amongst public corporations, solely Michael Saylor’s Technique holds extra cash.
Bitcoin itself did the quarter’s injury. The pioneer crypto fell from $87,316 in the beginning of 2026 to $58,605 by June 30, per the corporate’s 10-Q. That slide erased $401.5 million within the second quarter alone and pushed the half-year deficit to $1.27 billion.
Traders produce other causes to remain chilly. The agency earns no income but. It holds $106.1 million in money in opposition to $484.5 million in convertible notes. And 16,116 of its cash, greater than a 3rd of the stack, sit locked as collateral for that debt.
The inventory tells the story quickest. XXI traded close to $4.53 on Tuesday, down roughly 85% from its 52-week excessive of $30.43.
“That hole could possibly be seen as a misallocation of capital; we share that view,” Zagury wrote within the letter, which was additionally shared with BeInCrypto.
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The Berkshire Blueprint Behind the Repair
Zagury’s treatment borrows from Omaha. He needs a powerful stability sheet on the heart and cash-earning companies round it, the mannequin Berkshire Hathaway proved over a long time. He concedes XXI has not earned that comparability but.
“Twenty One owns one of many largest Bitcoin stability sheets within the public markets. That may be a actual benefit, but when Twenty One goes to be value proudly owning, it should grow to be greater than a Bitcoin treasury.”
5 priorities body the plan, protecting:
- Governance
- Working companies
- Capital-markets instruments
- Mergers and acquisitions (M&A), and
- Low-leverage lending backed by Bitcoin.
New impartial administrators Paul Lalljie and Karl Olsoni now sit on the board, with Lalljie chairing the audit committee.
The letter caps a turbulent first yr in public markets. Tether, the stablecoin issuer behind USDT, took full management of XXI in Could by shopping for out SoftBank. Founder Jack Mallers resigned as CEO in July, and Tether started to rethink XXI’s treasury mannequin.
An earlier blueprint had proposed merging XXI with Strike, Mallers’ Bitcoin monetary providers agency, and Elektron Power, the mining firm Zagury led.
Zagury pledged to deal with any offers with Tether strictly and transparently. He additionally promised a fuller technique replace earlier than year-end. Till actual money move arrives, the low cost retains the rating.
The submit Why Twenty One Capital Inventory is Value Much less Than the Bitcoin It Owns appeared first on BeInCrypto.