Jack Mallers Resigns as CEO of Twenty One Capital

Jack Mallers has stepped down as CEO of Twenty One Capital, the Bitcoin treasury company, effective July 21, 2026. Mallers, best known as the founder of Strike, is handing leadership to Raphael Zagury after what sources characterized as board-level disagreements over the firm's strategic direction. Zagury, who previously founded the Bitcoin mining venture Elektron Energy, will take over day-to-day management at Twenty One Capital. He has also worked at Goldman Sachs, Deutsche Bank, and Merrill Lynch. The leadership change comes after Twenty One Capital had been evaluating a three-way merger involving Twenty One, Strike, and Elektron Energy. That transaction would have combined Mallers' payments business with Zagury's mining operation. The merger plan has been abandoned. Twenty One is now shifting its strategy toward cash-flow generation, disciplined capital allocation, and acquiring operating businesses. The company has pointed to Berkshire Hathaway's long-term ownership approach as an inspiration. Mallers is returning his full focus to Strike, which remains a separate entity. His departure from Twenty One is not expected to affect Strike's operations. Tether CEO Paolo Ardoino acknowledged Mallers' contributions, crediting him with the "foundational vision and leadership" that helped bring the company to a public listing. Twenty One Capital currently holds 43,514 BTC, valued at roughly $2.8 billion, making it the world's second-largest public corporate Bitcoin treasury. The company went public in December 2025 via a SPAC merger with Cantor Equity Partners, with early backing from Tether and SoftBank. In May 2026, Tether increased its control by purchasing SoftBank's roughly 25% stake. Shares of Twenty One Capital closed at $5.32 on July 21, implying a market capitalization of about $1.8 billion. On that basis, the market is valuing the company at a significant discount to the value of its Bitcoin holdings alone. Investors will be watching how the shift away from a straightforward Bitcoin-treasury model plays out. A pure treasury vehicle is relatively easy to value based on the coin count and an applied premium or discount. A Berkshire-style holding company layered on top of a Bitcoin treasury is far harder to model, particularly with no announced targets for the operating businesses it intends to buy. Tether's dominant ownership position is another key factor. After buying out SoftBank and with Ardoino publicly backing the transition, investors may infer that Tether supported a board strategy that Mallers did not ultimately accept. For holders of XXI, the near-term question is whether the market rewards or penalizes the operational pivot.