TLDR
- Jack Mallers resigned as CEO of Twenty One Capital on July 20, returning full-time to Strike
- Raphael Zagury, founder of Elektron Energy and former Wall Street banker, takes over as CEO
- The proposed three-way merger between Twenty One Capital, Strike, and Elektron Energy has collapsed
- Twenty One Capital holds 43,514 BTC worth roughly $2.9 billion, the second-largest corporate Bitcoin treasury
- XXI shares dropped nearly 15% on July 21 following the news
Jack Mallers has stepped down as chief executive of Twenty One Capital, effective July 20. The board named Raphael Zagury as his replacement.
🚨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 co-founded Twenty One Capital and took it public on the New York Stock Exchange in December 2025 through a SPAC merger with Cantor Equity Partners.
The Merger That Fell Apart
Alongside his exit came the collapse of a proposed three-way merger between Twenty One Capital, Strike, and Elektron Energy. Tether first pitched the deal in April 2026 at the Bitcoin Conference.
The plan would have combined Twenty One’s Bitcoin treasury, Strike’s payments platform, and Elektron’s mining operations into one listed company. That deal is now dead.
Strike will remain a standalone company. Twenty One and Elektron are still in early talks about a possible two-way combination, but no deal has been confirmed.
Mallers was brief on X. “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
New CEO, New Direction
Zagury brings a different background to the role. He previously held positions at Goldman Sachs, Deutsche Bank, and Merrill Lynch before co-founding investment bank One Partners and Brazilian fintech lender OpenCo.
He had already served as an independent director at Twenty One Capital and as interim chair of its audit committee.
Where Mallers focused on aggressive Bitcoin accumulation, Zagury is signaling a shift toward institutional discipline. He said Twenty One “should be measured by the cash flow it generates and the discipline with which it allocates capital.”
Tether CEO Paolo Ardoino, who sits on Twenty One’s board, thanked Mallers for his role in founding the company and guiding it through its NYSE listing.
Bitcoin Holdings and Stock Reaction
Twenty One Capital holds 43,514 BTC, making it the second-largest corporate Bitcoin treasury behind Strategy. The holding is worth roughly $2.9 billion at current prices, against a cost basis near $3.69 billion.
XXI shares fell nearly 15% on July 21, trading in the $4.60 to $5.40 range. The stock has dropped around 53% from its 2025 peak near $47.
In May 2026, Tether moved to consolidate control by buying out SoftBank’s roughly 25% stake, which the Japanese firm had originally paid $999.3 million to acquire.
The company outlined five priorities under new leadership: corporate governance, building operating businesses, expanding capital markets activity, disciplined acquisitions, and a Bitcoin-backed lending platform.
The next earnings report is expected in early August, when investors will look for details on the Elektron discussions and Zagury’s plans.
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