Jack Mallers stepped down as CEO of Twenty One Capital on July 20, 2026, to focus full-time on bitcoin payments company Strike. The departure coincided with the collapse of a Tether-engineered three-way merger involving Twenty One Capital, Strike, and bitcoin miner Elektron Energy. XXI shares fell over 14% to $4.54 following the announcement, according to The Block. Mallers framed the decision as returning to his core mission: "My Bitcoin company is Strike. The work continues." The merger had been proposed by Tether in April 2026 to combine Bitcoin treasury management, payments infrastructure, and mining operations under one NYSE-listed entity.
Jack Mallers Steps Down as Twenty One Capital CEO
Mallers helped conceive Twenty One Capital, guided it through a SPAC merger with Cantor Equity Partners, and oversaw its NYSE listing in December 2025 under the ticker XXI. "I've decided to step down as CEO of Twenty One," Mallers wrote on X. "My life's work remains Bitcoin. My Bitcoin company is Strike. The work continues." He will no longer hold any executive role at the company. The transition was described as orderly, with Mallers and incoming CEO Zagury working together on the handover.
Raphael Zagury Appointed New CEO
Raphael Zagury was appointed CEO of Twenty One Capital effective July 20, 2026. Zagury's career includes managing director roles at Deutsche Bank and Merrill Lynch, a vice president position at Goldman Sachs, and co-founding boutique investment bank One Partners and Brazilian fintech lender OpenCo. He holds an MBA from Yale University. Tether CEO and Twenty One board member Paolo Ardoino stated: "On behalf of the Board of Directors, I would like to thank Jack for his vision and leadership in founding Twenty One Capital." Zagury stated: "Twenty One holds one of the largest Bitcoin balance sheets in the public markets. My job is to build the operating company around it, with the discipline, governance, and executional rigor of an institution."
Strike Exits Three-Way Merger Plans
Tether had proposed combining Twenty One Capital, Strike, and bitcoin miner Elektron Energy into a single NYSE-listed entity. Strike will remain a standalone business and is no longer being considered for any business combination with Twenty One. The transaction would have added Strike's Bitcoin treasury to Twenty One's holdings. The precise reasons for Strike's exit from the merger have not been detailed publicly. Mallers' decision to refocus on Strike as a standalone payments company made his continued involvement in a merged entity structurally incoherent.
Elektron Energy Merger Remains Under Evaluation
The two-way combination between Twenty One Capital and Elektron Energy — the bitcoin mining operation Zagury manages — remains under evaluation. Any acquisition of Elektron would constitute a related-person transaction subject to review under Texas law and Twenty One's internal policies. The deal sits at a preliminary stage with no assurance it will close. With Zagury simultaneously serving as CEO of Twenty One and managing Elektron, the governance complexity is significant. Any deal would require independent board review. Elektron Energy is described as one of the largest and most efficient bitcoin mining operations in the world. The revised corporate strategy also includes expanding into capital markets capabilities and bitcoin-backed lending, with further details expected in the coming months, according to the company.
Tether Becomes Majority Shareholder
Tether is now Twenty One's majority shareholder after buying out SoftBank's remaining stake in May 2026. That consolidation of control over a NYSE-listed company with one of the largest Bitcoin treasuries in public markets puts Tether in a position to set strategic direction. Any acquisition of Elektron will require a credible independent review process if Twenty One is to maintain institutional credibility.
Market Reaction to Leadership Change
XXI shares fell over 14% to $4.54 following the news, according to The Block. Markets had been pricing in the optionality embedded in the three-way merger — the idea that Twenty One would absorb Strike's payments infrastructure and Elektron's mining capacity. The partial collapse of that thesis, and the uncertainty around whether the two-way Elektron deal closes, removed a substantial portion of that embedded premium in a single session.
FAQ
Why did Jack Mallers step down as CEO of Twenty One Capital?
Jack Mallers stepped down on July 20, 2026 to focus full-time on Strike, the bitcoin payments company he founded. He stated that Strike remains his life's work and the place where he intends to continue serving Bitcoin users.
What is the current status of the proposed merger involving Twenty One Capital and Elektron Energy?
Strike has exited the proposed three-way merger, leaving only a potential two-way combination between Twenty One Capital and Elektron Energy under evaluation. That deal remains at a preliminary stage with no assurance it will close, and would be subject to review as a related-person transaction under Texas law.
Who is Raphael Zagury and what role does he have at Twenty One Capital?
Raphael Zagury was appointed CEO of Twenty One Capital effective July 20, 2026. He manages Elektron Energy and previously held senior roles at Goldman Sachs, Deutsche Bank, and Merrill Lynch. His stated focus is building operational discipline, strong cash flows, and institutional governance around Twenty One's Bitcoin balance sheet.
