Twenty One Capital Faces Bitcoin Valuation Gap Challenge
Twenty One Capital is facing a challenge to prove its worth as more than just a Bitcoin treasury. The company's CEO, Raphael Zagury, stated that investors value its shares below the value of its Bitcoin holdings. As of June 30, Twenty One held 43,514 BTC, but 16,116 BTC are pledged against $486.5 million of convertible notes due in 2030.
The market values XXI at about $1.6 billion, while its Bitcoin balance sheet is worth around $2.77 billion based on the current price of $63,700 per BTC. However, adding Twenty One's liabilities to the equation reduces this figure to a net value of approximately $2.39 billion.
Zagury wants to close the discount investors apply to the company's Bitcoin while proving that businesses built around the treasury can justify its value beyond the coins themselves. To achieve this goal, he outlined plans to build or acquire operating businesses, expand capital-markets capabilities, and develop Bitcoin-backed lending and credit products.