Tether-backed Twenty One Capital reports $1.09 billion Q3 net income on bitcoin gains

Twenty One Capital Twenty One Capital (XXI) reported third-quarter net income of $1.087 billion, almost entirely from $1.093 billion in fair value gains on its bitcoin holdings, according to an SEC filing.

The Tether-backed company held 43,514 BTC as of Sept. 30, valued at roughly $83,700 per BTC, plus $102.8 million in cash and cash equivalents. Its convertible notes carried $486.5 million in principal and were collateralized by about 16,116 BTC.

Twenty One Capital also recorded a $4.8 million operating loss and $1.34 million in interest expense for the three months ended Sept. 30, the filing shows.  For the first nine months of 2026, it reported a net loss of $186.5 million, reflecting bitcoin's price decline. 

"A balance sheet is not a business"

CEO Rapha Zagury acknowledged the results but said, "A balance sheet is not a business. It is our starting point."

"We welcome Bitcoin’s appreciation," Zagury wrote in a letter to shareholders. "But gains from an asset we own are not the same as earnings from businesses we operate. Building the latter is our job."

Zagury said the company was evaluating opportunities across bitcoin mining, lending, treasury and energy. The company would consider buying back shares when they trade below the value of the assets attributable to them, according to the CEO. 

Twenty One Capital was established with backing from Tether, Bitfinex and SoftBank in April last year, with the USDT issuer subsequently acquiring SoftBank's stake this May. 

The company's shares fell 19.48% over the past month, compared with Bitcoin's 16.06% decline over the same period, according to The Block's data.