Twenty One Capital, the corporate bitcoin holder controlled by stablecoin issuer Tether, reported a net loss of $413.5 million for the second quarter between April and June.
The company, which ranks as the second largest public corporate owner of bitcoin, attributed the bulk of its quarterly loss to a sharp revaluation of the digital assets on its balance sheet. According to its financial filing, Twenty One Capital held 43,514 bitcoins at the end of the second quarter, with a total market valuation of approximately $2.8 billion.
Shares in Twenty One Capital fell by nearly two percent to drop below $4.50 on the New York Stock Exchange following the publication of the results. The stock has now lost more than 90 percent of its value compared to its peak levels recorded in 2025, with management acknowledging in the report that its shares trade at a substantial discount relative to the underlying value of its bitcoin reserve.
Consortium Ownership and Failed Merger
Twenty One Capital was established in the spring of last year by a consortium comprising Tether, Japanese technology group SoftBank, digital asset platform Bitfinex, and Wall Street brokerage Cantor Fitzgerald. Tether, which controls the firm, is best known as the issuer of USDT, the global cryptocurrency market's dominant fiat collateralised stablecoin.
The financial report follows the breakdown of a major consolidation attempt in July. Tether had initiated a plan to merge Twenty One Capital with two other cryptocurrency enterprises, payment infrastructure provider Strike and mining operator Elektron Energy, to form a single entity combining reserve management, payment processing, and bitcoin mining operations.
Strategic Shift and Industry Sales
Following the collapse of the transaction, executive management at Twenty One Capital indicated that the firm will restructure its core business model. The company plans to expand beyond managing its digital currency treasury by launching commercial financial services, including lending backed by bitcoin collateral.
The quarterly loss comes as other major corporate holders adjust their treasury positions. Strategy, the world's largest publicly traded corporate holder of bitcoin, previously sold 1,690 bitcoins for $108.6 million. That transaction represented Strategy's fourth sale of coins from its reserves over a period of six weeks, with proceeds used to fund dividend distributions to holders of its preferred shares.
