Key Takeaways
- Jack Mallers departed as Twenty One Capital CEO on July 20, shifting his focus back to Strike full-time
- Former Wall Street executive and Elektron Energy founder Raphael Zagury assumes the CEO position
- A three-company merger involving Twenty One Capital, Strike, and Elektron Energy has been abandoned
- The firm maintains a 43,514 BTC position valued at approximately $2.9 billion, ranking as the second-biggest corporate Bitcoin holder
- XXI stock tumbled almost 15% on July 21 after the announcement
Twenty One Capital announced that Jack Mallers has vacated the chief executive position as of July 20. The board has appointed Raphael Zagury to lead the company moving forward.
Mallers helped establish Twenty One Capital and brought the company to the New York Stock Exchange in December 2025 via a SPAC transaction with Cantor Equity Partners.
Ambitious Merger Plan Unravels
The leadership transition coincides with the termination of a three-party merger proposal that would have united Twenty One Capital, Strike, and Elektron Energy. Tether initially unveiled this ambitious combination during the Bitcoin Conference in April 2026.
The arrangement aimed to merge Twenty One’s substantial Bitcoin reserves, Strike’s payment infrastructure, and Elektron’s mining capabilities under a single publicly traded entity. Those plans have been shelved.
Strike will continue operating independently. While Twenty One and Elektron maintain preliminary discussions regarding a potential two-company merger, nothing has been finalized.
Mallers kept his statement on X concise. “My life’s work remains Bitcoin. My Bitcoin company is Strike. The work continues.”
Leadership Transition Brings Strategic Pivot
Zagury arrives with extensive financial sector experience. His career includes stints at Goldman Sachs, Deutsche Bank, and Merrill Lynch, followed by co-founding investment firm One Partners and Brazilian digital lender OpenCo.
He previously contributed to Twenty One Capital as an independent board member and temporary audit committee chairman.
While Mallers emphasized bold Bitcoin acquisition strategies, Zagury appears to favor operational prudence. He stated the company “should be measured by the cash flow it generates and the discipline with which it allocates capital.”
Tether’s CEO Paolo Ardoino, a Twenty One board member, expressed appreciation for Mallers’ contributions in establishing the company and navigating its NYSE debut.
Corporate Bitcoin Position and Market Response
Twenty One Capital maintains a 43,514 BTC treasury, positioning it as the second-largest corporate Bitcoin holder after Strategy. The portfolio carries a current market value around $2.9 billion, compared to an acquisition cost basis approaching $3.69 billion.
Shares of XXI declined nearly 15% on July 21, with trading activity in the $4.60 to $5.40 band. The stock has surrendered approximately 53% of its value from the 2025 high near $47.
During May 2026, Tether strengthened its ownership position by purchasing SoftBank’s approximately 25% stake, which the Japanese conglomerate had originally acquired for $999.3 million.
Under new management, the firm has identified five strategic focus areas: strengthening corporate governance, developing operational businesses, enhancing capital markets engagement, pursuing selective acquisitions, and launching a Bitcoin-collateralized lending platform.
The upcoming earnings release, anticipated in early August, should provide additional clarity on potential Elektron negotiations and Zagury’s strategic vision.
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