Jack Mallers resigns as CEO of Twenty One Capital, returning to Strike as merger plans with Tether and Elektron Energy collapse, causing a significant drop in shares.
Key Developments
- Jack Mallers has resigned from his position as CEO of Twenty One Capital, returning to his role at Strike.
- The anticipated merger involving Twenty One, Strike, and Elektron Energy has been called off.
- Following the announcement, shares of Twenty One Capital fell nearly 18%, declining over 80% from last year's peak.
In a surprising move, Jack Mallers has resigned as CEO of Twenty One Capital, prompting a negative reaction from investors. The company, which holds a significant Bitcoin treasury, saw its shares drop almost 15% on the day of the announcement.
Mallers co-founded Twenty One Capital with Tether, known for its USDT stablecoin. The company went public in December 2025 via a SPAC merger, and currently holds 43,514 BTC, worth over $4 billion, making it the second-largest Bitcoin holder among publicly traded companies.
Merger Plans Fall Through
The resignation coincides with the failure of an ambitious merger plan that sought to combine the operations of Twenty One, Strike, and Elektron Energy into one public entity. This initiative was initially unveiled at the Bitcoin Conference in April 2026, with Mallers championing the concept of creating a leading Bitcoin company that would integrate mining, payment solutions, and treasury management.
However, with the merger now abandoned, Strike will continue as an independent company, and Twenty One's discussions with Elektron remain informal, lacking any formal agreements.
In his statement on X, Mallers expressed that the decision was challenging but necessary, reaffirming his commitment to Bitcoin and his work at Strike. "My life's work remains Bitcoin. My Bitcoin company is Strike. The work continues," he wrote.
I have decided to step down as CEO of Twenty One.
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. pic.twitter.com/L70YFYPt11
Following Mallers' departure, Raphael Zagury, founder of Elektron Energy and former executive at major financial institutions, has taken over as CEO of Twenty One. Zagury's management style will focus more on institutional discipline rather than aggressive Bitcoin acquisition, positioning the company to prioritize cash flow and capital allocation.
The Bitcoin treasury sector has faced increasing scrutiny, with Twenty One's share price falling from a peak of $31.51 to a low of $4.81. In May 2026, Tether attempted to consolidate its influence by acquiring SoftBank's 25% stake in the company for approximately $999.3 million.
