Jack Mallers has stepped down as CEO of Twenty One, the Bitcoin treasury company backed by Tether, following disagreements with the board about the firm’s future strategy. His departure comes just seven months after the company went public with $4 billion worth of Bitcoin, marking a swift end to his tenure.
Disputes Over Company Direction
Twenty One began trading on December 9, 2025, with approximately 43,500 BTC on its balance sheet. The firm’s initial backers included Tether, Bitfinex, and SoftBank. In May 2026, Tether acquired full control by purchasing SoftBank’s entire stake.
Mallers revealed on July 21, 2026, that he resigned due to an inability to align with the board on the company’s strategic path. He denied reports claiming he received $140.8 million in compensation, stating his stock options have since expired worthless. With his exit, Twenty One returns fully under Tether’s management. The incoming CEO, Raphael Zagury, plans to shift focus toward generating cash flow rather than solely accumulating Bitcoin.
Earlier Criticism of MicroStrategy’s Bitcoin Metrics
The circumstances of Mallers’ resignation gain added context considering his earlier public criticism of MicroStrategy’s Bitcoin strategy. At BTC Prague 2026, Mallers questioned Michael Saylor about the accuracy of the mNAV metric, which measures market valuation relative to the Bitcoin holdings of treasury firms.
Mallers expressed concern that some firms count convertible securities as equity even when conversion is highly unlikely due to share prices being far below conversion thresholds. Using Twenty One’s own convertible bond as an example, he noted the conversion price was $13 per share, while the stock traded near $5 at the time, inflating the mNAV metric unjustifiably.
He also challenged the sustainability of digital credit products like MicroStrategy’s Stretch bonds, which offered investors large perpetual dividends, citing a 12% yield as of July 2026. Mallers questioned how such high payouts could be supported without real revenue streams, implying potential risks in the model. Saylor responded to these points during the conference.
Tether’s Control and Future Outlook
With Mallers’ departure and Tether’s consolidation of ownership, Twenty One is reportedly reconsidering its business model. The new leadership aims to prioritize cash flow generation over pure Bitcoin accumulation, signaling a strategic pivot. This shift may impact how institutional Bitcoin treasury firms structure their holdings and manage investor expectations going forward.
This article is for informational purposes and does not constitute financial advice.
