Twenty One’s $2.8B Bitcoin exceeds market cap; 37% pledged

Twenty One Capital reported 43,514 BTC on its balance sheet as of June 30, worth roughly $2.77 billion at a Bitcoin price near $63,700. The company’s market capitalization was about $1.56 billion as of Aug. 11.

A portion of the holdings — 16,116 BTC, or about 37% — are pledged as collateral for $486.5 million of 1% convertible notes due in 2030. While pledged, those coins cannot be used for general corporate purposes or to support liquidity.

The company’s SEC filing shows $106.1 million in cash on the balance sheet. A simple adjustment that adds cash and subtracts the convertible principal produces a net asset figure near $2.39 billion, narrowing the implied gap between the treasury and market value to roughly 35%. That arithmetic excludes other liabilities and obligations on the balance sheet.

Twenty One said it does not expect to sell Bitcoin it acquired when its business combination closed during the next 12 months to meet liquidity needs. The company left open the possibility of sales in exceptional circumstances, listing operational requirements, regulatory obligations, strategic investments or other corporate purposes as potential triggers.

The firm reported a net loss of $1.27 billion for the first half of 2026, driven mainly by a $1.25 billion decline in the fair value of its Bitcoin holdings.

In a shareholder letter, CEO Raphael Zagury wrote: “Twenty One owns one of the largest Bitcoin balance sheets in the public markets. That is a real advantage, but if Twenty One is going to be worth owning, it must become more than a Bitcoin treasury.” He outlined plans to build or acquire operating businesses, expand capital-markets capabilities, and develop Bitcoin-backed lending and credit products aimed at generating positive cash flow around the Bitcoin balance sheet.

Execution of those plans remains limited. On July 21 the company announced it was no longer pursuing Strike, one of two potential acquisitions identified earlier this year. Other operating, merger-and-acquisition and credit initiatives remain under development.

The convertible notes and their pledged collateral reduce the share of the Bitcoin reserve available for corporate flexibility. If Bitcoin’s market value changes or the company seeks to release collateral under the terms of the notes, actions would involve note holders and creditors and could affect how management implements its operating and capital plans.