Twenty One Capital Made $1 Billion in Bitcoin Profit. 60% is Already Gone
Twenty One Capital reported a $1.087 billion third-quarter profit from Bitcoin holdings, but 60% of it has disappeared as the cryptocurrency's price fell since September 30.
The Texas-based firm's profit was generated from its 43,514 Bitcoin holdings, which gained $1.093 billion in value when Bitcoin reached approximately $83,700 per coin at the end of September. Despite this impressive gain, the company reported no revenue and actually posted a $4.8 million operating loss for the quarter.
Profit Disappears
As of November 13, Bitcoin's decline has reduced the value of Twenty One Capital's holdings by about $653 million from their quarter-end value, roughly 60% of the reported profit. The company's coins are now worth approximately $700 million less than what it paid for them.
But gains from an asset we own are not the same as earnings from businesses we operate.
Year-Still in Red
The same accounting rules that created the third-quarter profit worked in reverse earlier this year, producing a $1.27 billion net loss in the first half of 2026. Even after the third-quarter gain, Twenty One Capital remains $186.5 million in the red for the year.
We have no idea where Bitcoin price is going to be a year from now.
Investors reacted negatively, with XXI shares trading at $4.97 at midday Friday, down 0.6%. CEO Rapha Zagury suggested that buybacks deserve consideration if the stock trades below its asset value, while acknowledging uncertainty about Bitcoin's future price.
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