Twenty One Capital reports $1.087 billion Q3 profit on bitcoin fair-value gain
Tether-backed Twenty One Capital posted $1.087 billion in third-quarter net income, driven almost entirely by a $1.093 billion fair-value increase on its bitcoin treasury despite an operating loss.
Twenty One Capital reported third-quarter net income of $1.087 billion, driven by a $1.093 billion accounting gain on the fair value of its bitcoin holdings, according to the company's shareholder letter. In the letter, CEO Rapha Zagury cautioned shareholders that nearly all quarterly profit stemmed from asset appreciation rather than operational performance, noting that 'a balance sheet is not a business' and posting a $4.8 million operating loss for the quarter.[1][2][3]
As of Sept. 30, the Tether-backed firm held 43,514 bitcoin, valued at approximately $83,700 each, alongside $102.8 million in cash and cash equivalents. The company also carried $486.5 million in outstanding convertible-note principal secured by roughly 16,116 BTC, placing about 37% of its total cryptocurrency treasury up as collateral.[1][2][3]
According to the company's Form 10-Q filing with the SEC, Twenty One Capital posted a net loss of $186.5 million over the first nine months of 2026, pointing to roughly $1.27 billion in net losses during the first half of the year. The filing confirmed that the firm has no binding agreement to acquire bitcoin miner Elektron and has abandoned its pursuit of Strike after former CEO Jack Mallers departed in July. Mallers held vested options on 1,522,407 shares exercisable at $14.43 each, which expired unexercised on Oct. 18.[2]
Looking ahead, Zagury stated the company is evaluating business opportunities across mining, lending, treasury, and energy sectors, while noting that share buybacks deserve serious consideration if company shares trade below the net value of its underlying assets. The firm also appointed David Goldschmidt, formerly of Skadden, to its board and audit committee.[2]
Key facts
- Twenty One Capital posted third-quarter net income of $1.087 billion, primarily driven by a $1.093 billion fair-value gain on its bitcoin reserves.
- The company reported a $4.8 million operating loss for the third quarter.
- As of Sept. 30, Twenty One Capital held 43,514 BTC and $102.8 million in cash and cash equivalents.
- The firm owed $486.5 million in convertible-note principal secured by about 16,116 BTC, representing approximately 37% of its bitcoin holdings.
- For the first nine months of 2026, Twenty One Capital recorded a net loss of $186.5 million.
- Twenty One Capital has no binding agreement to acquire Elektron and has ceased pursuit of Strike, both previously eyed as part of a three-way merger proposed by Tether.
- Vested options on 1,522,407 shares held by former CEO Jack Mallers expired unexercised on Oct. 18.
Sources · 3 sources
- TB
The Block@TheBlockCoPost on X ·
THE BLOCK: Twenty One Capital $XXI reported third-quarter net income of $1.087 billion, driven by a $1.093 billion fair-value gain on its bitcoin holdings, according to its shareholder letter. As of Sept. 30, the company held 43,514 bitcoin:native and $102.8 million in cash and cash equivalents. It had $486.5 million in outstanding convertible-note principal secured by about 16,116 BTC.
Open source - UN
UnchainedArticle ·
Twenty One Capital CEO Says $1.09 Billion Quarterly Profit Came From Bitcoin, Not Business Twenty One Capital (XXI) reported $1.087 billion in net income for the third quarter, and CEO Rapha Zagury told shareholders on Friday that nearly all of it came from a $1.093 billion rise in the accounting value of the bitcoin the company holds, not from cash its operations produced. “A balance sheet is not a business,” Zagury wrote in the quarterly letter, calling the company’s coins “our starting point.” He added that “gains from an asset we own are not the same as earnings from businesses we operate.” The company ended September with 43,514 BTC , valued at about $83,700 apiece, and $102.8 million in cash, the letter said . It also owed $486.5 million in principal on convertible notes, debt that can be converted into company stock, backed by roughly 16,116 BTC . By Unchained’s count, that puts about 37% of the treasury up as collateral. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . What the 10-Q Adds The company’s quarterly report to the SEC shows the third-quarter profit followed heavy losses earlier in the year. Twenty One posted a $186.5 million net loss for the first nine months of 2026, which implies, by Unchained’s math, about $1.27 billion in losses over the first six months. The filing also states the company has no binding agreement to buy Elektron , the bitcoin miner Zagury founded. It confirms Twenty One is no longer pursuing Strike , the bitcoin financial services firm founded by former Twenty One CEO Jack Mallers , a split that was already public: Strike pulled out of the deal in July when Mallers stepped down as CEO. Both deals were part of a three-way merger that Tether, which holds a stake in Twenty One, proposed in April . Vested options on 1,522,407 shares held by Mallers, exercisable at $14.43 each, expired unexercised on Oct. 18 at the end of a 90-day window after his July 20 departure, the 10-Q shows . What Zagury Says Comes Next Zagury wrote that Twenty One is evaluating deals in mining, lending, treasury and energy, and has “walked away from opportunities where the economics or terms did not make sense.” He said bitcoin remains the benchmark any new spending has to beat, and that buybacks “deserve serious consideration” when the shares trade below the value of the assets behind them. He also said David Goldschmidt, the former head of Skadden’s global capital markets practice, has joined the board and its audit committee. Zagury said he will keep writing to shareholders every quarter. Related Listen: Bitcoin’s Price May Have Bottomed. One Reason Is the AI Debasement Trade The post Twenty One Capital CEO Says $1.09 Billion Quarterly Profit Came From Bitcoin, Not Business appeared first on Unchained .
Open source - TB
The BlockArticle ·
Tether-backed Twenty One Capital reports $1.09 billion Q3 net income on bitcoin gains Twenty One Capital reported $1.09 billion in Q3 net income, driven by Bitcoin gains, while posting a $4.8 million operating loss.
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