Twenty One Capital reported a $414 million net loss for the second quarter, underscoring the volatility embedded in a balance sheet dominated by 43,514 bitcoin. The filing arrives weeks after Raphael Zagury took over as chief executive on July 20, replacing founder Jack Mallers, who returned full-time to the payments firm Strike.
The loss narrows from the $859.7 million deficit recorded in Q1, when the fair-value decline of the bitcoin holdings drove an $847.8 million mark-to-market hit as the portfolio fell from $3.80 billion to $2.95 billion. Bitcoin traded around $63,556 at the time of the latest report, leaving the treasury valued above $2.7 billion.
Zagury used his first public appearance as CEO — a July 22 fireside chat at Mining Disrupt filed with the SEC — to declare that the premium-funded equity-for-bitcoin arbitrage powering the sector is a temporary dislocation. "There's no free money forever," he said, arguing that market-value-to-NAV multiples across corporate bitcoin holders should compress toward 1x as more companies copy the playbook.
The strategic pivot aims to convert the static treasury into an operating engine. Priorities outlined in May and refreshed under Zagury include acquiring or building cash-generating businesses — mining, lending, bitcoin-backed financial products — with any acquisition measured for accretion against bitcoin. The model he cites is Berkshire Hathaway's insurance float: recurring cash flows redeployed into productive assets.