Twenty One Capital reported a third-quarter net income of $1.087 billion, which stems almost entirely from $1.093 billion in fair value gains on its bitcoin holdings, according to an SEC filing. The company held 43,514 BTC as of Sept. 30, valued at roughly $83,700 per BTC, alongside $102.8 million in cash and cash equivalents. Its convertible notes carried $486.5 million in principal and used about 16,116 BTC as collateral.
A balance sheet is not a business
The firm recorded a $4.8 million operating loss and $1.34 million in interest expense for the three months ended Sept. 30. For the first nine months of 2026, the company reported a net loss of $186.5 million because bitcoin prices declined. CEO Rapha Zagury acknowledged these results but said, "A balance sheet is not a business. It is our starting point." He added, "We welcome Bitcoin’s appreciation. But gains from an asset we own are not the same as earnings from businesses we operate. Building the latter is our job." I find his dismissal of the massive quarterly gain blunt, especially since the company shares fell 19.48% over the past month while Bitcoin dropped 16.06%.
Future operations and holdings
Zagury said the company evaluates opportunities across bitcoin mining, lending, treasury and energy. He also stated the company would consider buying back shares when they trade below the value of the assets attributable to them. Tether, Bitfinex and SoftBank established the company in April last year, though the USDT issuer acquired the SoftBank stake this May.
| Metric | Value |
|---|---|
| Q3 Net Income | $1.087 billion |
| BTC Holdings | 43,514 BTC |
| Cash and Equivalents | $102.8 million |
| 9-Month Net Loss | $186.5 million |
