Why Twenty One Capital Stock is Worth Less Than the Bitcoin It Owns
Twenty One Capital’s new CEO opened his first shareholder letter by agreeing together 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 method.
The confession landed Tuesday subsequent to a painful quantity. The firm misplaced $413.5 million in the second quarter, three weeks into Zagury’s tenure as chief government.
Why Twenty One Capital Trades Below Its Bitcoin
The math behind the grievance is easy and brutal. XXI holds 43,514 BTC, a stack value about $2.8 billion with Bitcoin (BTC) trading near $63,555. Yet the whole firm sells for roughly $1.6 billion.
In plain phrases, consumers pay about 57 cents for each greenback of Bitcoin inside. Bitcoin Treasuries data places the hole at 0.70x even after counting debt and money. Among public firms, solely Michael Saylor’s Strategy holds extra cash.
Bitcoin itself did the quarter’s injury. The pioneer crypto fell from $87,316 at the begin of 2026 to $58,605 by June 30, per the firm’s 10-Q. That slide erased $401.5 million in the second quarter alone and pushed the half-year deficit to $1.27 billion.
Investors 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 high of $30.43.
“That hole might be seen as a misallocation of capital; we share that view,” Zagury wrote in the letter, which was additionally shared with BeInCrypto.
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The Berkshire Blueprint Behind the Fix
Zagury’s treatment borrows from Omaha. He needs a robust stability sheet at the middle and cash-earning companies round it, the mannequin Berkshire Hathaway proved over many years. He concedes XXI has not earned that comparability but.
“Twenty One owns considered one of the largest Bitcoin stability sheets in the public markets. That is an actual benefit, but when Twenty One is going to be value proudly owning, it should turn out to be greater than a Bitcoin treasury.”
Five priorities body the plan, overlaying:
- Governance
- Operating companies
- Capital-markets instruments
- Mergers and acquisitions (M&A), and
- Low-leverage lending backed by Bitcoin.
New unbiased 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 control of XXI in May by shopping for out SoftBank. Founder Jack Mallers resigned as CEO in July, and Tether started to rethink XXI’s treasury model.
An earlier blueprint had proposed merging XXI with Strike, Mallers’ Bitcoin monetary companies agency, and Elektron Energy, 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. Until actual money circulate arrives, the low cost retains the rating.
The submit Why Twenty One Capital Stock is Worth Less Than the Bitcoin It Owns appeared first on BeInCrypto.