Jack Mallers leaves Twenty One as Strike exits Tether's three-way bitcoin merger

Quick Take

• Twenty One Capital named Raphael Zagury CEO effective July 20, replacing founder Jack Mallers, who is stepping down to return full-time to his bitcoin payments company Strike.
• The reshuffle came as Twenty One confirmed Strike is dropping out of the three-way merger Tether proposed in April, leaving only a possible two-way combination with bitcoin miner Elektron Energy under evaluation.

Twenty One Capital appointed Raphael Zagury as chief executive officer effective July 20, replacing founder and former CEO Jack Mallers, who is stepping down to focus on his bitcoin payments company Strike, the Tether-backed firm said Tuesday.

Mallers and Zagury are working together on an orderly transition, according to the company. Mallers will no longer hold an executive role at the NYSE-listed treasury firm he reportedly launched in April 2025 with backing from Tether, SoftBank, and Cantor Fitzgerald.

"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."

Strike exits the merger

The leadership change landed alongside a reset of the corporate structure Tether had pushed since April.

Tether Investments, Twenty One's majority shareholder, proposed a two-stage merger in late April that would first fold Strike into Twenty One (XXI), then combine the result with Elektron Energy, a bitcoin miner led by Zagury, The Block reported.

Twenty One confirmed on Tuesday that Strike will remain a standalone business and is no longer being considered for a combination with the company.

The proposed combination with Elektron remains under evaluation, the company said. Any acquisition of Elektron would constitute a related-person transaction subject to review under Twenty One's related-person transaction policy and Texas law, and the company cautioned the deal sits at a preliminary stage with no assurance it closes.

Who is Zagury

Zagury founded and leads the team managing Elektron Energy, which the company describes as one of the largest and most efficient bitcoin (BTC) operating businesses in the world.

He began his career on Wall Street in roles including managing director at Deutsche Bank and Merrill Lynch and vice president at Goldman Sachs, later co-founding the boutique investment bank One Partners and the Brazilian fintech lender OpenCo. He holds an MBA from Yale University.

Zagury had served as an independent director on Twenty One's board and as interim chair of its audit committee, resigning from each committee effective July 15 while continuing as a director.

A shift toward cash flow

Zagury laid out a mandate centered on operating discipline rather than treasury size alone.

"Twenty One holds one of the largest Bitcoin balance sheets in the public markets," Zagury said. "My job is to build the operating company around it, with the discipline, governance, and executional rigor of an institution."

The company unveiled refreshed priorities spanning corporate governance, operating businesses, capital markets, mergers and acquisitions, and a planned bitcoin-native lending and credit platform.

Also, it cited Berkshire Hathaway as the model for a long-term ownership approach built on disciplined reinvestment.

Twenty One Capital went public through a SPAC merger with Cantor Equity Partners in December 2025, listing under the ticker XXI with one of the largest bitcoin treasuries among public companies. Tether bought out SoftBank's remaining stake in May.

"On behalf of the Board of Directors, I would like to thank Jack for his vision and leadership in founding Twenty One Capital," said Paolo Ardoino, CEO of Tether and a Twenty One board member.

XXI shares fell over 14% to trade at $4.54 following the news, according to The Block's crypto equities price page.

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