Twenty One Capital trades at discount to Bitcoin holdings as pledged collateral clouds valuation

Twenty One Capital's shares traded at a material discount to the value of its Bitcoin holdings on Aug. 11, but the gap narrows once debt-backed collateral and cash are included in the balance-sheet math. The NYSE-listed company held 43,514 BTC as of June 30, and 16,116 BTC were pledged against $486.5 million of 1% convertible notes due in 2030, limiting their use for general corporate purposes or liquidity. With Bitcoin near $63,700, the treasury was worth about $2.77 billion versus an equity value of roughly $1.56 billion at the Aug. 11 close, implying a 44% discount on a gross basis. Adding $106.1 million of cash and subtracting the note principal reduces the simplified net value to about $2.39 billion and the discount to roughly 35%. The valuation debate comes after Twenty One reported a $413.5 million second-quarter loss and about $1.27 billion of net loss for the first half of 2026, driven overwhelmingly by roughly $1.25 billion of fair-value declines in Bitcoin. Zagury, who took over on July 20 after Jack Mallers stepped down to focus on Strike, has said the Tether-backed company must become more than a Bitcoin treasury by building or buying operating businesses, expanding capital-markets activity and developing Bitcoin-backed lending and credit products. Twenty One has said it does not expect to sell the Bitcoin acquired at the close of its business combination over the next 12 months to meet liquidity needs, though it left room for sales in exceptional circumstances, and it said on July 21 that it was no longer pursuing Strike.