Twenty One Capital Drops Strike Deal, Holds Bitcoin
The Bitcoin treasury company posted a $413.5 million net loss in the three months ended June 30, 2026, as fair-value losses on its 43,514-coin reserve narrowed from the prior quarter.
Twenty One Capital, Inc. (XXI) said on July 21, 2026, that it is no longer pursuing the acquisition of Zap Solutions Holding, Inc., doing business as Strike, a potential deal first announced on April 29, 2026. The company still has no binding commitments on Elektron Energy Operations Limited and said no such transaction has been evaluated or approved by its board.
The Bitcoin-focused operating company reported a net loss of $413,539,273 for the three months ended June 30, 2026, down from $859,691,958 for the three months ended March 31, 2026. The swing tracked a smaller decline in the fair value of its digital-asset reserve.
The change in fair value of digital assets was a $401,476,433 loss in the June quarter, versus an $847,818,963 loss in the March quarter. The company attributed both figures to a decrease in Bitcoin’s value from December 31, 2025. Under ASU 2023-08, Bitcoin is revalued at fair value at each period end, with the change recognized in net income, so the company said operating results will fluctuate with the coin’s price.
Bitcoin holdings were 43,514 as of June 30, 2026, matching the March 31, 2026 count and one coin below the 43,515 held at December 31, 2025. Class A Common Stock outstanding rose to 346,807,836 from 346,548,153. Bitcoin per share, measured in Sats and excluding Class B shares that carry no economic rights, fell to 12,547 from 12,557. The company said it had refined the BPS definition to use only Class A shares because Class B is not publicly tradable.
General and administrative expenses were $10,613,461 in the June quarter, versus $10,463,888 in the March quarter. The company said the increase mainly reflected stock-based compensation and legal and other professional fees. Marketing and advertising expenses were $116,600. Interest expense was $1,333,003, comprising interest on Convertible Notes and amortization of debt issuance costs. There was no gain on disposal of digital assets in the June quarter.
The company engages in two principal activities: actively accumulating Bitcoin and managing those holdings, and commencing development of educational materials and branded content intended to increase institutional and retail Bitcoin literacy. It said it expects to engage in Bitcoin-centric financial services after those initial activities, with preparation for launch expected to begin shortly and timing subject to regulatory approvals, market needs and the macroeconomic environment.
The Bitcoin accumulation strategy involves acquiring Bitcoin from initial investments, debt and equity financings, and operating cash flows in excess of operating expenses, according to a discretionary, macro-driven thesis, and issuing debt or equity from time to time to fund purchases. The company said it expects to allocate the majority of available treasury capital into Bitcoin over time while retaining flexibility to manage liquidity.
Education and branded content are described as a central pillar of the company’s mission. It said it will create an education division shortly after the Business Combination, produce modular content for policymakers, institutional investors, financial advisors, corporations and retail investors, and monetize through subscriptions, licensing fees and sponsored partnerships. The company said the ability to generate revenue sufficient to achieve profitability will depend on raising capital and developing learning programs toward greater Bitcoin adoption.
The company’s future results are expected to be impacted by the highly volatile nature of Bitcoin’s valuation, demand for digital assets, execution of the Bitcoin acquisition strategy, regulatory and technical developments, and marketing efforts. It may in the future acquire additional Bitcoin through at-market purchases to build a strategic reserve.
On July 21, 2026, Twenty One Capital reported that it is no longer pursuing the acquisition of Strike. It still has no binding commitments or agreements with respect to Elektron, nor has any such transaction been evaluated or approved by the board. The company said there can be no assurance it will eventually enter into or consummate any acquisitions, or that, if it does, they will achieve intended benefits.