Jack Mallers resigned as CEO of Twenty One Capital on July 20, stepping down to focus full-time on his Bitcoin payments company Strike. The move coincided with the failure of a planned merger involving Twenty One Capital, Strike, and Elektron Energy.
Leadership Change and Strategic Shift
Raphael Zagury was appointed CEO by the board following Mallers’ departure. Zagury, with prior experience at Goldman Sachs, Deutsche Bank, and Merrill Lynch, had served as an independent director and interim audit committee chair at Twenty One Capital. He emphasized a shift toward institutional discipline, stating the company should be evaluated by its cash flow and capital allocation strategy. In contrast, Mallers had prioritized aggressive Bitcoin accumulation during his tenure.
Merger Plans and Bitcoin Holdings
The proposed three-way merger, first introduced by Tether at the Bitcoin Conference in April 2026, aimed to combine Twenty One Capital’s Bitcoin treasury, Strike’s payment platform, and Elektron Energy’s mining operations into one public entity. This plan has now collapsed, with Strike remaining independent. Twenty One Capital and Elektron Energy are reportedly still exploring a potential two-way merger but have not confirmed any deal.
Twenty One Capital holds 43,514 BTC, valued at approximately $2.9 billion, making it the second-largest corporate Bitcoin treasury after Strategy. Following the announcement of Mallers’ exit and the merger’s failure, Twenty One Capital’s stock (ticker $XXI) dropped nearly 15% on July 21.
Tether CEO Paolo Ardoino, who sits on Twenty One’s board, expressed gratitude to Mallers for founding the company and navigating its NYSE listing in December 2025 through a SPAC merger with Cantor Equity Partners.
Mallers commented on social media that his focus remains on Bitcoin through Strike, affirming that his work in the space continues despite stepping down from Twenty One Capital.
Material is for informational purposes and not financial advice.
