Earnings call transcript: Twenty One Capital posts $1.1 billion q3 profit on bitcoin rally

Twenty One Capital reported a staggering $1.1 billion profit for the third quarter of 2026, marking a dramatic turnaround from a $413 million loss in the previous quarter. The surge in Bitcoin's value drove the company's earnings, with the cryptocurrency's fair value rising by $1.1 billion during the period.

At the end of Q3 2026, Twenty One Capital owned 43,514 Bitcoins, a figure that remained unchanged from the previous quarter. The fair value of these Bitcoin holdings increased to approximately $3.6 billion, valuing each coin at around $83,700. This dramatic rise in Bitcoin's price, from $58,600 at the end of June to $83,700 by the end of September, was the primary source of the company's earnings.

Despite the substantial profit, the company continues to operate at a loss when considering operating cash flow. During the quarter, Twenty One Capital used $1.7 million in cash from operations and $13.3 million year to date. The business has yet to generate positive operating cash flow from its core activities, indicating that the earnings are largely accounting-based rather than indicative of strong operational performance.

The company's CEO, Rapha Zagury, has stated that Twenty One Capital's strategy is shifting from a pure Bitcoin treasury model to include operating businesses, lending, and capital markets activities. Management is exploring opportunities in mining, Bitcoin-backed lending, treasury operations, and energy-related ventures, with the goal of creating earnings power beyond Bitcoin price fluctuations.

Investors received the earnings report positively, with the stock rising 1.4% in premarket trading to $5.07. However, the shares are still far below their 52-week high of $17.69 and only slightly above their 52-week low of $4.15. This moderate market reaction reflects the skepticism surrounding the company's strategy and the volatility of its earnings, which are heavily influenced by Bitcoin's price fluctuations.