Twenty One Capital’s new CEO opened his first shareholder letter by agreeing with his harshest critics. Rapha Zagury admitted the market values XXI at less than the Bitcoin it owns, and said management sees it the same way.

The confession landed Tuesday next to a painful number. The company lost $413.5 million in the second quarter, three weeks into Zagury’s tenure as chief executive.

Why Twenty One Capital Trades Below Its Bitcoin

The math behind the complaint is simple and brutal. XXI holds 43,514 BTC, a stack worth about $2.8 billion with Bitcoin (BTC) trading near $63,555. Yet the entire company sells for roughly $1.6 billion.

In plain terms, buyers pay about 57 cents for every dollar of Bitcoin inside. Bitcoin Treasuries data puts the gap at 0.70x even after counting debt and cash. Among public companies, only Michael Saylor’s Strategy holds more coins.

Bitcoin itself did the quarter’s damage. The pioneer crypto fell from $87,316 at the start of 2026 to $58,605 by June 30, per the company’s 10-Q. That slide erased $401.5 million in the second quarter alone and pushed the half-year deficit to $1.27 billion.

Investors have other reasons to stay cold. The firm earns no revenue yet. It holds $106.1 million in cash against $484.5 million in convertible notes. And 16,116 of its coins, more than a third of the stack, sit locked as collateral for that debt.

The stock tells the story fastest. XXI traded near $4.53 on Tuesday, down roughly 85% from its 52-week high of $30.43.

“That gap could be viewed as a misallocation of capital; we share that view,” Zagury wrote in the letter, which was also shared with BeInCrypto.

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The Berkshire Blueprint Behind the Fix

Zagury’s remedy borrows from Omaha. He wants a strong balance sheet at the center and cash-earning businesses around it, the model Berkshire Hathaway proved over decades. He concedes XXI has not earned that comparison yet.

“Twenty One owns one of the largest Bitcoin balance sheets in the public markets. That is a real advantage, but if Twenty One is going to be worth owning, it must become more than a Bitcoin treasury.”

Five priorities frame the plan, covering:

• Governance
• Operating businesses
• Capital-markets tools
• Mergers and acquisitions (M&A), and
• Low-leverage lending backed by Bitcoin.

New independent directors Paul Lalljie and Karl Olsoni now sit on the board, with Lalljie chairing the audit committee.

The letter caps a turbulent first year in public markets. Tether, the stablecoin issuer behind USDT, took full control of XXI in May by buying out SoftBank. Founder Jack Mallers resigned as CEO in July, and Tether began to rethink XXI’s treasury model.

An earlier blueprint had proposed merging XXI with Strike, Mallers’ Bitcoin financial services firm, and Elektron Energy, the mining company Zagury led.

Zagury pledged to handle any deals with Tether strictly and transparently. He also promised a fuller strategy update before year-end. Until real cash flow arrives, the discount keeps the score.

Source: BeInCrypto