Twenty One Capital's $1.09 billion quarterly profit comes almost entirely from a bitcoin paper gain, with an operating loss of $4.8 million

Twenty One Capital, the Tether-backed bitcoin treasury company, reported third-quarter net income of about $1.087 billion in its quarterly filing with the SEC on Friday, but almost all of it was an accounting gain on its coins. The filing shows a $1.093 billion fair-value gain on bitcoin and a $4.8 million loss from operations. For the first nine months of 2026 the company still has a net loss of $186.5 million.

At September 30, Twenty One held 43,514 bitcoin with a fair value of about $3.64 billion, roughly $83,700 each, plus $102.8 million in cash. Its convertible notes, carried at about $484.7 million, are secured by about 16,116 of those coins, which the filing says are unavailable for general corporate use while pledged. With bitcoin near $68,600 on Friday, per CoinGecko data cited by Cointelegraph, the same coins would be worth about $3.0 billion by Cryptoweek's calculation, roughly $660 million less than at quarter-end.

CEO Rapha Zagury wrote in a shareholder letter: "A balance sheet is not a business." The Block reported that the company is evaluating bitcoin mining, lending, treasury services and energy, and would consider buybacks when its shares trade below the value of the assets behind them. By The Block's data, its shares fell 19.48% over the past month, against 16.06% for bitcoin.