Twenty One Capital CEO Jack Mallers Resigns After Failed Merger Deal

Key Takeaways

Table of Contents

Jack Mallers stepped down from his CEO position at Twenty One Capital effective July 20, returning to Strike full-time
Former Wall Street executive and Elektron Energy founder Raphael Zagury assumes the CEO role
A planned merger involving Twenty One Capital, Strike, and Elektron Energy has been terminated
With 43,514 BTC valued at approximately $2.9 billion, Twenty One Capital maintains the second-largest corporate Bitcoin position
XXI stock plummeted almost 15% on July 21 in response to the announcement

In a significant leadership transition, Jack Mallers has relinquished his position as chief executive officer of Twenty One Capital as of July 20. The company’s board has appointed Raphael Zagury to succeed him in the top role.

🚨BREAKING: Jack Mallers steps down as CEO of Twenty One Capital
Mallers announced his resignation from $XXI, the Tether-backed Bitcoin treasury company launched in April 2025, saying the role helped clarify his long-term priorities.
The departure comes amid a brutal decline… pic.twitter.com/Swpo4ivqH2
— Coin Bureau (@coinbureau) July 22, 2026

Mallers played a pivotal role in establishing Twenty One Capital and shepherding its public debut on the New York Stock Exchange during December 2025 via a SPAC transaction with Cantor Equity Partners.

Proposed Three-Way Deal Terminated

Concurrent with Mallers’ departure, the ambitious three-way merger proposal involving Twenty One Capital, Strike, and Elektron Energy has officially unraveled. Tether initially unveiled this consolidation plan during the Bitcoin Conference in April 2026.

The proposed transaction aimed to unite Twenty One’s substantial Bitcoin reserves, Strike’s payment technology infrastructure, and Elektron’s cryptocurrency mining capabilities under a single publicly-traded entity. That vision has now been abandoned.

Strike will continue operating independently. While Twenty One and Elektron are exploring potential avenues for a bilateral arrangement, no definitive agreement has materialized.

Mallers kept his public statement concise on X platform: “My life’s work remains Bitcoin. My Bitcoin company is Strike. The work continues.”

I've decided to step down as CEO of Twenty One.
This wasn't an easy decision, but it was the right one. This experience brought tremendous clarity about who I am and what I want to build.
My life's work remains Bitcoin. My Bitcoin company is @Strike.
The work continues. pic.twitter.com/L70YFYPt11
— Jack Mallers (@jackmallers) July 21, 2026

Leadership Transition and Strategic Pivot

Zagury arrives with extensive financial sector credentials. His career includes senior roles at Goldman Sachs, Deutsche Bank, and Merrill Lynch, followed by co-founding investment banking firm One Partners and Brazilian digital lending platform OpenCo.

Prior to his CEO appointment, he already served Twenty One Capital as an independent board member and temporary chair of its audit oversight committee.

Contrasting with Mallers’ focus on ambitious Bitcoin acquisition strategies, Zagury appears to be emphasizing financial rigor and institutional standards. He stated that Twenty One “should be measured by the cash flow it generates and the discipline with which it allocates capital.”

Paolo Ardoino, Tether’s chief executive and a Twenty One board member, expressed appreciation for Mallers’ contributions in establishing the company and navigating its NYSE listing process.

Bitcoin Treasury and Market Response

Twenty One Capital maintains a position of 43,514 BTC, ranking it as the second-largest corporate Bitcoin holder after Strategy. At prevailing market rates, this treasury is valued at approximately $2.9 billion, compared to an acquisition cost basis around $3.69 billion.

XXI shares experienced a sharp decline of nearly 15% on July 21, with trading activity between $4.60 and $5.40. The stock has surrendered approximately 53% of its value from its 2025 high near $47 per share.

During May 2026, Tether moved to strengthen its ownership position by acquiring SoftBank’s approximately 25% equity stake, which the Japanese conglomerate had initially purchased for $999.3 million.

Under the new leadership structure, the company has identified five strategic priorities: strengthening corporate governance frameworks, developing operational business units, increasing capital markets engagement, pursuing disciplined acquisition opportunities, and launching a Bitcoin-collateralized lending platform.

The company’s upcoming earnings disclosure is anticipated in early August, when market participants will seek clarification on the Elektron negotiations and Zagury’s strategic roadmap.