Twenty One Capital posted a $413.5 million net loss in the second quarter, mostly driven by the falling value of its massive bitcoin holdings, as newly appointed CEO Raphael Zagury laid out plans to turn the Tether-backed firm into a bigger-picture bitcoin operating company.
The NYSE-listed company (XXI) recorded a $401.5 million loss from changes in the value of its digital asset holdings, accounting for more than 97% of its overall loss.
Twenty One holds 43,514 bitcoin (BTC) worth roughly $2.78 billion at current prices. It ranks as the second-largest publicly traded bitcoin treasury, though Japan-based Metaplanet is closing the gap with 43,000 BTC.
The company also ended the quarter with $106.1 million in cash and roughly $484.5 million of convertible notes outstanding.
Twenty One shares rose about 1% during the first hour of trading Tuesday to $4.62, though the stock remains down nearly 50% year-to-date.
New CEO shares plans
The results come roughly three weeks after Zagury replaced founder Jack Mallers as CEO, with Mallers stepping down to return his focus to his bitcoin payments company Strike.
The leadership shakeup also saw Strike drop out of a proposed merger with Twenty One, while a potential acquisition of the Zagury-led bitcoin miner Elektron Energy was under consideration.
In his first shareholder letter since taking the reins, Zagury acknowledged concerns over Twenty One's performance and said the company needs to prove it can create value beyond just holding bitcoin.
