Headline: Jack Mallers resigns as Twenty One Capital CEO as Tether’s plan to merge three Bitcoin businesses collapses
Jack Mallers has stepped down as CEO of Twenty One Capital, triggering a sharp share sell-off: the Bitcoin-treasury company’s stock fell nearly 15% on Tuesday. Twenty One — a publicly traded firm that holds Bitcoin on its balance sheet so investors can gain exposure without buying the asset directly — still controls 43,514 BTC, a holding currently worth more than $4 billion and the second-largest by a public company behind MicroStrategy.
Background and the collapsed deal
Mallers co-founded Twenty One with support from Tether (issuer of the USDT stablecoin) and took the company public on the New York Stock Exchange via a SPAC in December 2025. In April 2026, at the Bitcoin Conference, Tether pitched an ambitious plan to merge three Bitcoin-focused businesses into one publicly traded powerhouse: Twenty One’s treasury operations, Strike’s global Bitcoin payments and lending platform, and Elektron Energy’s mining infrastructure. Mallers had publicly backed the move and was slated to lead the combined company, with Elektron founder Raphael Zagury named president.
Per Bloomberg, that three-way merger has now collapsed. Strike will remain independent. Twenty One and Elektron are reportedly in early discussions about a potential two-way transaction, but no deal has been confirmed.
Mallers’ departure and response
Mallers announced his resignation on X, writing: “This wasn't an easy decision, but it was the right one. My life's work remains Bitcoin. My Bitcoin company is Strike. The work continues.” He indicated his ongoing focus will be on Strike.
New leadership and a different pitch
Tether named Raphael Zagury — founder of Elektron Energy and a former senior banker at Deutsche Bank, Merrill Lynch and Goldman Sachs — as Twenty One’s new CEO. Zagury is emphasizing a more institutional approach: according to Tether’s release, he said Twenty One “should be measured by the cash flow it generates and the discipline with which it allocates capital,” a shift from Mallers’ emphasis on aggressive Bitcoin accumulation.
Wider context: market skepticism and shareholder moves
Bitcoin treasury companies have attracted growing skepticism since they surged in popularity. Twenty One’s shares reached a 52-week high of $31.51 before sliding to a low of $4.81. In May 2026, Tether consolidated its control over Twenty One by buying out SoftBank’s roughly 25% stake — a position SoftBank originally paid $999.3 million to acquire.
Bottom line
Mallers’ exit and the broken merger mark a pivot point for Twenty One. The company keeps a significant Bitcoin reserve and a new CEO promising cash-flow discipline, but the failure to combine mining, payments and treasury under one listed roof removes the scale and vertical integration Tether had promoted. Investors will be watching whether a revised deal with Elektron materializes and how Zagury’s strategy reshapes the business.
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