Twenty One Q3 net profit: $1.087 billion

on November 13, Twenty One Capital (NYSE: XXI) released a shareholder letter from CEO Rapha Zagury, disclosing a third-quarter net profit of $1.087 billion, primarily driven by a $1.093 billion fair value gain on Bitcoin holdings rather than operating cash flow.

At period-end, the company held 43,514 bitcoins valued at approximately $83,700 apiece; cash and equivalents totaled $102.8 million; convertible note principal stood at $486.5 million, collateralized by approximately 16,116 bitcoins. In the letter, Zagury emphasized that “a balance sheet is not a business, merely a starting point,” stressing that the company aims to establish cash-generating operations centered on its treasury, with performance measured by growth in value per share rather than the quantity of coins held or the scale of financing.

He stated that the company is evaluating opportunities in mining, lending, treasury management, and energy, and has already turned down certain transactions deemed “economically or contractually unreasonable.” He added that share buybacks warrant serious consideration when the stock price trades below its underlying asset value. The company also plans to support open-source Bitcoin development and security research, including initiatives related to AI-assisted vulnerability detection and quantum threats.