New Twenty One Capital CEO Rapha Zagury just dropped his first shareholder letter and opened with the hard truth everyoneโs been saying: XXI trades at a steep discount to its Bitcoin holdings.
They hold 43,514 bitcoin:native (~$2.8B), yet the market caps the whole company around $1.6B, roughly 0.57โ0.70x NAV after debt and cash. Only Strategy holds more BTC among public companies.
Q2 was rough: $413.5M loss, driven almost entirely by Bitcoinโs slide. No revenue yet, $484M in convertible debt (with over a third of the
$BTC locked as collateral), and the stock is down ~85% from its 52-week high.
Zagury owns it: โThat discount can be viewed as capital misallocation; we agree.โ
His fix is pure Berkshire inspired: keep one of the biggest public Bitcoin balance sheets, then build real cash flowing businesses around it. Five priorities, governance, operations, capital markets tools, M&A, and low leverage
$BTC backed financing. Two new independent directors already seated.
Tether fully owns the company now. Strategy update promised before year-end. Until actual cash flow shows up, the discount isnโt going anywhere.
Brutal honesty from the new CEO. Letโs see if they can close the gap.