Twenty One CEO Raphael Zagury told shareholders the company must grow into something bigger than a Bitcoin treasury, as the firm tries to answer investor concerns about its valuation, execution speed, and stock performance.
The Tuesday shareholder letter followed the company’s latest earnings release. Twenty One posted a net loss of $413.5 million in the second quarter of 2026, driven almost entirely by a non-cash change in the fair value of its Bitcoin holdings.
Bitcoin treasury companies have had a difficult 2026. Bitcoin Magazine said Bitcoin has lost about 50% of its value since reaching an all-time high of $126,080 in October, weighing on the shares of companies built around large crypto holdings.
Zagury addresses concerns over the stock
Zagury took over in July, replacing Jack Mallers. In the letter, he wrote that Twenty One has one of the largest Bitcoin balance sheets in the public markets, calling that a real advantage. Still, he said the company has to become more than a Bitcoin treasury if it is going to be worth owning.
He said investors have raised concerns that the stock trades at a discount to the Bitcoin on the company’s balance sheet. Some also believe the company’s buildout is not happening fast enough.
Zagury said that process has already begun and that searches for key operating roles are underway. 「Ultimately, actions, not words, will address these concerns and move the company forward.」
Plans include Bitcoin-backed lending and developer support
Zagury said Twenty One plans to build a conservatively leveraged Bitcoin-backed lending and credit business. He also said the company will support Bitcoin developers with no strings attached.
He closed with a sharper distinction between the company and the asset itself: 「I will finish with this: Twenty One is not a substitute for Bitcoin. Investors who want pure Bitcoin exposure should understand that Bitcoin itself is the cleanest expression of that view. Twenty One must earn the right to be something different: a way to own the build around Bitcoin.」
43,514 BTC on the balance sheet
According to Bitcointreasuries.net, Twenty One holds 43,514 BTC, valued at about $2.7 billion at Bitcoin’s current price of $63,464. That makes it the second-largest public Bitcoin treasury company.
Twenty One was created by Tether, Bitfinex, Cantor Fitzgerald, and SoftBank, although SoftBank is no longer part of the project. The company debuted last year through a SPAC merger with Cantor Equity Partners, a blank-check company affiliated with Cantor Fitzgerald.
Bitcoin treasury stocks have been under pressure
The report said Bitcoin treasury companies surged last year as listed firms rushed to accumulate Bitcoin and other cryptocurrencies in an effort to lift their stock prices. Many followed the model established by Strategy, formerly known as MicroStrategy.
Since October, though, the crypto market sell-off has hit those stocks. Even Strategy, the largest corporate holder of Bitcoin, has sold portions of its Bitcoin holdings to create a cash buffer.
In July, Twenty One said it wanted to build a model similar to Berkshire Hathaway: to build and acquire high-quality operating businesses that can use Twenty One’s balance sheet, while keeping disciplined capital allocation at the parent company and creating a long-term ownership model inspired by Berkshire Hathaway.
Twenty One shares, traded on the New York Stock Exchange under the ticker XXI, were down more than 1% over the past day on Tuesday. The stock is down more than 50% year to date.
This article first appeared in Bitcoin Magazine and was written by Mathew Di Salvo.