Twenty One Capital, a company controlled by Tether and the second-largest public holder of bitcoin after Michael Saylor's Strategy, reported a net loss of $413.5 million for the second quarter. Almost the entire loss came from the revaluation of bitcoins on its balance sheet.
At the end of the quarter, Twenty One owned 43,514 $BTC worth approximately $2.8 billion and also held $106 million in cash.
Twenty One Capital was established in the spring of 2025 by a consortium of Tether, SoftBank, Bitfinex, and Cantor Fitzgerald. The project was initiated by Cantor Equity Partners under the management of Brandon Lutnick, the son of U.S. Secretary of Commerce Howard Lutnick.
At launch, the company received over 42,000 bitcoins worth about $3 billion and immediately became the second-largest public holder of bitcoin after Strategy. The company is headed by Jack Mallers, the founder of the payment service Strike.
In July 2026, Tether abandoned a deal to merge Twenty One with Strike and the mining company Elektron Energy. Mallers left his position as head of the company, and Rafael Zagury became the new CEO. The published quarterly report was his first in the new role and also marked a change in strategy: Twenty One intends to develop not only its bitcoin reserves but also its own operational business and cryptocurrency-backed lending.
Shares of Twenty One (ticker XXI on NYSE) have plummeted by more than 90% from their 2025 peak over the past year. In its report, the company acknowledged that its stock is "trading at a significant discount" to the value of the bitcoins it holds.
The world's largest bitcoin holder, Strategy, also reported a quarterly loss of $8.2 billion. Similarly, the largest U.S. miner, MARA Holdings, recorded a loss of $611 million. The revaluation of bitcoins on the balance sheet also led to significant losses for crypto companies associated with the family of U.S. President Donald Trump, particularly his media company Trump Media.
Many of the dozens of Strategy copycat companies bought cryptocurrency in 2025 at an average price significantly above the current rate. Bitcoin traded at a historical high above $100,000 from spring to October last year when most of them entered the market. In August 2026, $BTC is trading at $63–65 thousand.
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