Bitcoin News

Story: Twenty One Capital Sits on $2.77 Billion in Bitcoin While Stock Trades 44% Below

By Jean-Luc Maracon

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Pledged Bitcoin and the Debt Problem. Out of those 43,514 Bitcoin, 16,116 are locked up as collateral for $486.

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Zagury's Plan to Build Beyond Bitcoin. That "something else" is what Zagury laid out in his shareholder letter.

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Closing the Gap Won't Be Easy. Twenty One's core problem is a two-front battle. Front one: close the valuation discount.

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Twenty One Capital's stock is a mess. The company holds 43,514 Bitcoin worth roughly $2.77 billion, yet its equity value sat at just $1.

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Zagury's message was blunt: the stock is trading at a significant discount to the company's Bitcoin holdings, and that gap points to what he called a misallocation of capital.

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Out of those 43,514 Bitcoin, 16,116 are locked up as collateral for $486.5 million in convertible notes that come due in 2030.

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Do the math with Bitcoin near $63,700 and you get $2.77 billion in gross Bitcoin value. Pull out the $486.5 million in note principal, add back $106.

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The company says it doesn't plan to sell any Bitcoin in the next 12 months. Barring extraordinary circumstances — think regulatory obligations or some forced strategic move —…

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That "something else" is what Zagury laid out in his shareholder letter. He wants Twenty One to stop being just a Bitcoin treasury and start operating like a real business.

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Execution, though, is slow. The company recently walked away from acquiring Strike — one of two potential acquisitions it had been eyeing.

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See also: Tether Loses $4 Billion in 60 Days as Bitcoin Seller Exhaustion Grows

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The lending and credit products are still in development. The broader M&A strategy seems to be moving at a cautious pace. And with a net loss of $1.

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That kind of loss is basically an accounting consequence of Bitcoin price moves rather than operational failure, but it doesn't look great on paper.

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Twenty One's core problem is a two-front battle. Front one: close the valuation discount. Front two: prove that the businesses built around its Bitcoin reserve actually add value…

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The Bitcoin treasury model — pile up coins, watch the stock track Bitcoin's price — worked well enough for companies like MicroStrategy when Bitcoin was running hot.

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