Twenty One’s $2.8 billion Bitcoin pile is worth far more than its stock, but there’s a catch
Twenty One Capital says buyers worth its shares under its Bitcoin holdings at the same time as 37% of the treasury stays pledged in opposition to debt.
On Aug. 11, the corporate’s CEO Raphael Zagury told shareholders that XXI was buying and selling at a “materials low cost” to the Bitcoin it holds, describing the hole as a potential misallocation of capital.
The firm’s second-quarter SEC filing reveals why that comparability is more difficult than its headline Bitcoin stability.
Twenty One held 43,514 BTC as of June 30, but 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 worth 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% under the gross worth of its Bitcoin. However, the comparability excludes the liabilities hooked up to that stability sheet. Adding 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%.
Meanwhile, the pledged BTC doesn’t seem to create a direct liquidity downside. Twenty One stated 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.
However, the corporate left open the potential of Bitcoin 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 truthful worth.
Twenty One Capital desires to develop into more than a Bitcoin treasury
The valuation hole issues as a result of Zagury desires Twenty One to develop into more than a treasury vehicle.
In his shareholder letter, he said:
“Twenty One owns one of many largest Bitcoin stability sheets within the public markets. That is a actual benefit, but if Twenty One is going to be worth proudly owning, it should develop into more than a Bitcoin treasury.”
To obtain this purpose, he outlined plans to construct or purchase working companies, develop capital-markets capabilities, and develop Bitcoin-backed lending and credit products.
Zagury added that the corporate in the end must generate optimistic money movement round its Bitcoin stability sheet.
However, execution of its long-term targets stays restricted. Twenty One stated July 21 that it was no longer pursuing Strike, one in all two potential acquisitions recognized earlier this 12 months, whereas its broader working, M&A and credit score plans stay underneath improvement.
Twenty One subsequently 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.
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