Twenty One Capital, backed by Tether and Bitfinex, reported third-quarter net income of $1.087 billion, with $1.093 billion coming from fair value gains on its bitcoin holdings, according to an SEC filing.
As of September 30, the company held 43,514 BTC valued at approximately $83,700 per bitcoin, along with $102.8 million in cash and cash equivalents. The company's convertible notes carried $486.5 million in principal and were collateralized by roughly 16,116 BTC.
Despite the substantial gains, Twenty One Capital recorded a $4.8 million operating loss and $1.34 million in interest expense for the three-month period. For the first nine months of 2026, the company reported a net loss of $186.5 million, reflecting bitcoin's price decline earlier in the year.
CEO Rapha Zagury acknowledged the quarterly results but emphasized that asset appreciation differs from operational earnings. In a shareholder letter, Zagury stated, "A balance sheet is not a business. It is our starting point." He added, "Gains from an asset we own are not the same as earnings from businesses we operate. Building the latter is our job."
Zagury noted the company was evaluating opportunities in bitcoin mining, lending, treasury management, and energy sectors. The CEO said Twenty One Capital would consider share buybacks when shares trade below the value of underlying assets.
Twenty One Capital was established in April 2025 with backing from Tether, Bitfinex, and SoftBank. Tether acquired SoftBank's stake in May 2026.
