Tether's Bitcoin Merger Collapses; Twenty One Capital CEO Jack Mallers Resigns
Jack Mallers resigned as CEO of Twenty One Capital (XXI) after Tether’s planned three-way merger with Strike and Elektron Energy fell apart. Disagreeing with the board’s strategy, Mallers left to focus on his payments firm Strike. New CEO Raphael Zagury shifted XXI’s focus from Bitcoin accumulation to cash-flow generation. XXI holds 43,514 BTC, the second-largest corporate Bitcoin treasury, but its stock has dropped 43% year-to-date amid the turmoil.
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Jack Mallers Steps Down as CEO of Twenty One After Clashing with Board Over Bitcoin Strategy
Jack Mallers, founder of Strike, has resigned as CEO of Twenty One (XXI), a Tether-backed Bitcoin treasury firm, after just seven months. Mallers cited disagreements with the board over the company's future direction. His exit follows public criticism of MicroStrategy's Michael Saylor over mNAV metrics and digital credit yields at BTC Prague earlier in 2026. Tether, which took full control of XXI in May 2026, now holds the second-largest corporate Bitcoin treasury. Incoming CEO Raphael Zagury plans to shift focus toward cash flow rather than aggressive Bitcoin accumulation. The stock fell 13.5% on the news, and critics on social media accused Mallers of a 'rug pull,' which he denied, noting he took no severance and forfeited his options.
XXI Stock Plunges 18% After CEO's Abrupt Exit and Merger Collapse
Twenty One Capital (NYSE: XXI) shares fell nearly 18% to $4.37 on July 21, 2026, after co-founder and CEO Jack Mallers resigned due to a strategic disagreement with the board over the company's long-term direction. The leadership change coincided with the collapse of a broader expansion strategy proposed by Tether in April, which aimed to merge Twenty One Capital, Strike, and Elektron Energy into a single publicly traded Bitcoin company. Bloomberg reported that Strike will remain independent, while Twenty One and Elektron continue discussions. Despite the turmoil, Twenty One remains the world's second-largest corporate Bitcoin holder with 43,514 BTC. New CEO Raphael Zagury signaled a strategic shift away from pure Bitcoin accumulation toward building an operating business focused on cash flow generation and capital allocation discipline, a move endorsed by Tether CEO Paolo Ardoino.
XXI Stock Plunges 18% After CEO's Abrupt Exit
Twenty One Capital (NYSE: XXI) saw its stock drop nearly 18% to $4.37 on July 21, 2026, after co-founder and CEO Jack Mallers resigned due to a strategic disagreement with the board over the company's long-term direction. The leadership change also coincided with the collapse of a broader expansion strategy proposed by Tether, which aimed to merge Twenty One Capital, Strike, and Elektron Energy into a single publicly traded Bitcoin company. That plan has fallen apart, with Strike remaining independent and Twenty One and Elektron continuing separate discussions. Despite the turmoil, Twenty One remains the world's second-largest corporate Bitcoin holder with 43,514 BTC. New CEO Raphael Zagury signaled a shift away from pure Bitcoin accumulation toward building an operating business focused on cash flow, governance, and capital allocation discipline.
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Jack Mallers Quits Twenty One Capital as Tether's Bitcoin Merger Collapses
Jack Mallers has resigned as CEO of Twenty One Capital, a publicly traded Bitcoin treasury company, following the collapse of Tether's proposed merger of three Bitcoin businesses. The merger would have combined Twenty One's treasury operations, Strike's payments platform, and Elektron Energy's mining infrastructure into a single publicly listed entity. Shares of Twenty One fell nearly 15% on the news. Raphael Zagury, founder of Elektron Energy and a former investment banker, has been appointed as the new CEO, signaling a shift from aggressive Bitcoin accumulation to institutional discipline and cash flow generation. Twenty One still holds 43,514 BTC, worth over $4 billion, ranking it second among public companies for Bitcoin holdings behind Michael Saylor's Strategy. Mallers stated his focus remains on his Bitcoin company, Strike.
Jack Mallers Quits Twenty One Capital as Tether's Bitcoin Merger Collapses
Jack Mallers has resigned as CEO of Twenty One Capital, a publicly traded Bitcoin treasury company, following the collapse of Tether's planned three-way merger that would have combined Twenty One, Strike, and Elektron Energy into a single publicly traded entity. Shares of Twenty One fell nearly 15% on the news. Tether first proposed the merger in April 2026, but it has now fallen apart. Strike will remain standalone, while Twenty One and Elektron Energy are in early discussions for a potential two-way deal. Raphael Zagury, founder of Elektron Energy, has been appointed as the new CEO of Twenty One, signaling a shift from aggressive Bitcoin accumulation to institutional capital discipline. Twenty One still holds 43,514 BTC, worth over $4 billion, ranking it second among public companies for Bitcoin holdings behind Strategy.
Twenty One Capital CEO Jack Mallers Resigns Over Bitcoin Business Strategy Disagreement
Jack Mallers has resigned as CEO of Twenty One Capital, a major publicly traded Bitcoin treasury company listed on the NYSE, citing irreconcilable differences with the board over the company's long-term strategy. Mallers, who helped launch the company in late 2025 via a SPAC merger with Cantor Equity Partners, envisioned building cash-flow-generating Bitcoin businesses alongside the treasury, but the board favored a more traditional Bitcoin holding model. The company currently holds approximately 43,514 BTC. Mallers will now focus on Strike, the Bitcoin payments platform he founded, which offers Lightning-powered payments, treasury infrastructure, and cross-border settlement tools. The resignation comes after Tether acquired SoftBank's stake in May 2026, becoming Twenty One's controlling shareholder. Mallers stated that stepping down was 'the honest and the right thing to do' for shareholders and Bitcoiners.
Tether Rethinks XXI’s Bitcoin Treasury Model After Just 7 Months
Twenty One Capital (XXI) CEO Jack Mallers resigned seven months after the company went public, citing disagreements with the board over the company's future. Tether also abandoned its plan to merge XXI with Strike, Mallers' payments company, and Elektron Energy. New CEO Raphael Zagury, a former Goldman Sachs and Deutsche Bank executive, outlined a revised strategy focused on generating cash flow from operating businesses and lending against Bitcoin holdings, rather than simply accumulating more BTC. XXI holds 43,514 BTC, making it the second-largest corporate Bitcoin treasury after Strategy. The company's stock has fallen 43% year-to-date, reflecting broader pressure on digital asset treasury firms amid Bitcoin's price slump.