Twenty One Capital Slumps to $413M Loss Amid Plans for Bitcoin Expansion
Twenty One Capital, an NYSE-listed company (XXI), reported a $413.5 million net loss in Q2, largely due to the decline in value of its massive Bitcoin holdings. The firm holds 43,514 BTC worth approximately $2.78 billion at current prices.
New CEO Raphael Zagury outlined plans to transform Twenty One into a more substantial Bitcoin operating company. He acknowledged concerns over the company's performance and emphasized the need for it to create value beyond merely holding Bitcoin.
Zagury laid out five priorities for the year ahead: strengthening governance, building or acquiring operating businesses, developing capital-market capabilities, establishing an M&A operations, and eventually launching a Bitcoin lending and credit business. He referenced Berkshire Hathaway as an example of what he envisions for Twenty One, a strong balance sheet surrounded by independently operated businesses that generate cash flow.
The company's stock price has remained down nearly 50% year-to-date, despite rising about 1% during the first hour of trading on Tuesday to $4.62.