Twenty One Capital says investors value its shares below its Bitcoin holdings even as 37% of the treasury remains pledged against debt.
On Aug. 11, the company's CEO Raphael Zagury told shareholders that XXI was trading at a “material discount” to the Bitcoin it holds, describing the gap as a potential misallocation of capital.
The company's second-quarter SEC filing shows why that comparison is more complicated than its headline Bitcoin balance.
Twenty One held 43,514 BTC as of June 30, but 16,116 BTC secure $486.5 million of 1% convertible notes due in 2030 and cannot be used for general corporate purposes or liquidity while pledged.
At Bitcoin's current price near $63,700, the treasury is worth roughly $2.77 billion, compared with an equity value of about $1.56 billion based on XXI's Aug. 11 close.
That puts the stock roughly 44% below the gross value of its Bitcoin. However, the comparison excludes the liabilities attached to that balance sheet. Adding Twenty One's $106.1 million of cash and subtracting the $486.5 million note principal produces a simplified net value of about $2.39 billion, narrowing the implied discount to roughly 35%.
Meanwhile, the pledged BTC does not appear to create an immediate liquidity problem. Twenty One said it does not expect to sell any Bitcoin acquired when its business combination closed during the next 12 months to fund liquidity needs.
However, the company left open the possibility of Bitcoin sales in exceptional circumstances, including operational requirements, regulatory obligations, strategic investments, or other corporate purposes.
This revelation comes as the company reported a $1.27 billion net loss for the first half of 2026, driven overwhelmingly by a $1.25 billion decline in Bitcoin's fair value.
Twenty One Capital wants to become more than a Bitcoin treasury
The valuation gap matters because Zagury wants Twenty One to become more than a treasury vehicle.
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