Twenty One Capital reported a $1.087 billion third-quarter profit on Friday. The money came from Bitcoin (BTC) rising in value, and about 60% of it has already disappeared.
Bitcoin has fallen since the quarter closed on Sept. 30. The Texas firm’s coins are now worth about $700 million less than it paid.
Where Did Twenty One Capital’s $1 Billion Profit Come From?
US accounting rules require companies to book changes in the value of crypto they hold as profit or loss. No coins need to be sold.
At the end of September, each Bitcoin was worth about $83,700, the company’s quarterly filing shows. That price lifted its 43,514 coins by $1.093 billion.
Meanwhile, the business itself reported no revenue. It posted a $4.8 million operating loss for the quarter.
Chief Executive Officer (CEO) Rapha Zagury, who took over after Jack Mallers stepped down in July, drew the same line.
“But gains from an asset we own are not the same as earnings from businesses we operate,” Rapha Zagury, CEO of Twenty One Capital, in his shareholder letter.
How Much of the $1 Billion Is Left?
On Nov. 13, the coins were worth about $2.99 billion, according to BitcoinTreasuries. That is about $653 million below their quarter-end value, roughly 60% of the profit.
The company paid about $3.69 billion for the coins, its filing shows. As a result, the holdings now sit roughly $700 million below cost.
The same rule worked in reverse earlier this year. Bitcoin’s decline produced a $1.27 billion net loss in the first half of 2026.
Even after the third-quarter gain, the company remains $186.5 million in the red for the year.
Investors did not cheer. XXI shares traded at $4.97 at midday Friday, down 0.6%.
Zagury said buybacks deserve serious consideration if the stock trades below its asset value. However, he conceded the company cannot call Bitcoin’s next move.
“…we have no idea where Bitcoin price is going to be a year from now,” Rapha Zagury, on the earnings call.
Twenty One Capital ranks among the largest corporate Bitcoin holders, so its earnings now rise and fall with the coin. If Bitcoin ends December below $83,700, the same rule will book a fourth-quarter loss on its holdings.
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