Tether-backed Twenty One Capital reported approximately $1.1 billion in net profit in the third quarter, thanks to the increase in value of its Bitcoin holdings, while recording an operating loss of $4.8 million.
According to the SEC filing cited by The Block, the company recorded a $1.093 billion valuation gain on its Bitcoin holdings. This item accounts for its $1.087 billion net profit. For the first nine months of the year, the company reported a total net loss of $186.5 million, driven by the decline in Bitcoin’s price.
How much Bitcoin does the company hold?
As of September 30, Twenty One Capital held 43,514 BTC. The company had $102.8 million in cash and cash equivalents. Approximately 16,116 BTC had been pledged as collateral for $486.5 million in principal on convertible notes.
What steps is management considering?
CEO Rapha Zagury said that an increase in Bitcoin’s value and making a profit from the company’s operations are two different things. He said the company is exploring opportunities in mining, lending, treasury management, and energy. Zagury also said they could consider a buyback if the share price falls below the value of assets per share.
According to data from The Block, the company’s shares fell about 19.5% over the past month, while Bitcoin declined about 16% over the same period.
Not investment advice.