Twenty One Capital Plunges 18% After CEO Resigns, Merger Collapses

Arjun Parashar Tue, July 21, 2026 at 10:17 AM PDT | 3 min read

Market Snapshot:

• XXI: +2.03%
• BTC-USD: -0.51%
• 9984.T: +2.91%

Jack Mallers is stepping down as CEO of Twenty One Capital (NYSE: XXI), the second-largest Bitcoin corporate treasury company, just months after unveiling an ambitious plan to reshape the industry's public markets.

Mallers, a co-founder of the firm, announced on Tuesday that he resigned following a strategic disagreement with the company's board over its long-term direction.

The news rattled investors. Shares of Twenty One Capital (XXI) fell nearly 18% on July 21 to around $4.37, as the market digested both the leadership change and the collapse of a broader expansion strategy.

Twenty One Capital is a Bitcoin-native company built to accumulate and hold Bitcoin as its core treasury strategy. Led by Jack Mallers and backed by Tether, Bitfinex, and SoftBank, it went public through a SPAC merger with Cantor Equity Partners, positioning itself as a Bitcoin-accumulation vehicle rivaling Michael Saylor's Strategy.

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Twenty One's Bitcoin Ambitions Hit an Unexpected Roadblock

When Tether unveiled its vision for Twenty One in April, the plan extended far beyond building another Bitcoin treasury company.

The stablecoin issuer proposed combining Twenty One Capital, Strike, and Elektron Energy into a single publicly traded Bitcoin company. Under the proposal:

• Twenty One would contribute its Bitcoin treasury
• Strike would add its Bitcoin payments and lending business
• Elektron would provide large-scale Bitcoin mining infrastructure

The combined company was designed to become one of the largest Bitcoin-focused public firms, spanning treasury management, mining, and financial services.

That vision is no longer moving forward. Bloomberg reported on July 21 that Strike will remain an independent company, while Twenty One and Elektron continue discussions on future collaboration.

Focus Shifts Beyond Bitcoin Accumulation

Despite the leadership change, Twenty One remains the world's second-largest corporate Bitcoin holder with 43,514 BTC, according to BitcoinTreasuries.

New CEO Raphael Zagury signaled that the company's next phase will focus less on simply accumulating Bitcoin and more on building an operating business.

"My job is to build the company around it — with the discipline, governance, and operating rigor of an institution." — Raphael Zagury, after his appointment

"Going forward, XXI should be measured by the cash flow it generates and the discipline with which it allocates capital."

The shift reflects a broader trend among Bitcoin treasury firms, which are increasingly being judged on governance, capital allocation, and sustainable cash flow — rather than the size of their Bitcoin holdings alone.

Tether CEO Paolo Ardoino endorsed the transition, describing Zagury as "one of the best operators in this industry."

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