The new CEO of Bitcoin Treasury Twenty One has assured investors that the firm plans to evolve beyond its current status as merely a Bitcoin treasury, addressing shareholder apprehensions regarding the company’s future direction.
In a letter to shareholders released on Tuesday, the firm—now recognized as the second largest Bitcoin treasury—reported a net loss of $413.5 million for Q2 2026, primarily attributable to a non-cash “change in fair value” of its Bitcoin holdings.
Bitcoin treasuries, including Twenty One, have encountered significant challenges throughout 2026, correlating with a substantial decline in Bitcoin’s value. The leading cryptocurrency has experienced a nearly 50% reduction in value since reaching an all-time high of $126,080 in October, adversely affecting the stock prices of related companies.
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— Rapha Zagury (@RaphaZagury) August 11, 2026
Raphael Zagury, who took over leadership in July, replacing Jack Mallers, noted that “Twenty One possesses one of the largest Bitcoin balance sheets in the public markets, which is a significant advantage. However, for Twenty One to be deemed a worthwhile investment, it must transcend its identity as a Bitcoin treasury.”
Zagury highlighted concerns raised by investors about the stock trading at a discount relative to its Bitcoin holdings, with some expressing that progress has not been sufficiently rapid.
He reassured stakeholders by stating, “The necessary work has commenced; searches for vital operational roles are already in progress.” Furthermore, he emphasized that “actions, not words, will be critical in addressing these concerns and advancing the company’s objectives.”
In addition, Zagury affirmed the company’s intention to establish a conservatively leveraged Bitcoin-backed lending and credit business, as well as support Bitcoin developers “without any strings attached.”
“I would like to conclude by stating that Twenty One is not a substitute for Bitcoin,” Zagury remarked. “Investors seeking direct exposure to Bitcoin should recognize that the cryptocurrency itself represents the most transparent expression of that interest. Twenty One must earn its place as a distinctive vehicle for ownership in ventures surrounding Bitcoin.”
Bitcoin Treasury Twenty One was conceived through the collaboration of Tether, Bitfinex, Cantor Fitzgerald, and SoftBank, the latter of which is no longer associated with the initiative. According to Bitcointreasuries.net, it currently holds the second-largest public Bitcoin treasury, comprising a total of 43,514 coins, equivalent to approximately $2.7 billion at Bitcoin’s current price of $63,464.
The company made its public debut last year through a merger with Cantor Equity Partners, a special purpose acquisition company linked to the financial services firm Cantor Fitzgerald.
The surge in Bitcoin treasuries last year was driven by public companies eager to enhance their stock prices by accumulating Bitcoin and other cryptocurrencies.
Following the path set by companies like Strategy (formerly MicroStrategy), many firms have seen stock prices decline as cryptocurrency markets have faced sell-offs since October. Even Strategy, which holds the largest corporate Bitcoin reserve, has divested portions of its Bitcoin to bolster financial liquidity.
In July, Twenty One announced its ambition to create a model akin to Berkshire Hathaway’s, focusing on the development and acquisition of high-quality operating businesses that “leverage Twenty One’s balance sheet while adhering to disciplined capital allocation at the parent company to establish a long-term ownership structure inspired by Berkshire Hathaway.”
As of Tuesday, Twenty One’s stock (NYSE: XXI) experienced a decline of over 1% in a single day and has fallen more than 50% year-to-date.
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