Twenty One Capital reports $414 million Q2 loss as new CEO plans expansion beyond Bitcoin treasury

Twenty One Capital reported a $413.5 million net loss for Q2 2026, bringing its first-half loss to $1.27 billion, primarily driven by a $401.5 million decline in the value of its 43,514 bitcoin holdings. Newly appointed CEO Raphael Zagury, who replaced founder Jack Mallers after a proposed three-way merger with Strike was abandoned, announced plans to expand the Tether-backed firm beyond a passive treasury. Zagury's five-point strategy includes building operating businesses and launching a bitcoin lending arm to address the stock's steep discount to its net asset value.

Twenty One Capital Q2 loss

• ▪Twenty One Capital posted a $413.5 million net loss in the second quarter of 2026.
• ▪Twenty One Capital ended the second quarter of 2026 with $106.1 million in cash and approximately $484.5 million of convertible notes outstanding.
• ▪Twenty One Capital reported a total net loss of $1.27 billion for the first half of 2026.

Bitcoin price decline impact

• ▪Twenty One Capital disclosed the purchase of an additional 6,284 bitcoin in July 2026.
• ▪Twenty One Capital holds 43,514 bitcoin, valued at approximately $2.8 billion as of June 30, 2026, making it the second-largest publicly traded bitcoin treasury.
• ▪Twenty One Capital recorded a $401.5 million loss in the second quarter of 2026 from changes in the value of its digital asset holdings.

CEO Zagury expansion priorities

• ▪Twenty One Capital CEO Raphael Zagury committed the firm to supporting Bitcoin's open-source infrastructure and closely monitoring transactions with its controlling shareholder, Tether.
• ▪Twenty One Capital CEO Raphael Zagury outlined five priorities for the year ahead: strengthening governance, building or acquiring operating businesses, developing capital-market capabilities, establishing M&A operations, and launching a bitcoin lending and credit business.

Leadership transition to Zagury

• ▪Raphael Zagury replaced founder Jack Mallers as CEO of Twenty One Capital, effective July 20, 2026.
• ▪Jack Mallers stepped down as CEO of Twenty One Capital to return his focus to his bitcoin payments company, Strike.

Merger restructuring with Elektron

• ▪The proposed three-way merger between Twenty One Capital, Strike, and Elektron Energy was abandoned after Strike dropped out of the deal.
• ▪Twenty One Capital is currently considering a narrower, two-way acquisition or combination with the bitcoin mining firm Elektron Energy.

Stock valuation discount concerns

• ▪Twenty One Capital's stock price has declined by approximately 50% year-to-date, closing at $4.58 on August 10, 2026, down from a 52-week high of $12.51.
• ▪Twenty One Capital's stock trades at a material discount to its bitcoin holdings, with its enterprise mNAV standing at 0.7x.