Jack Mallers Resigns as Twenty One Capital CEO; Tether Merger Collapses
In brief
- Jack Mallers resigned as CEO of Twenty One Capital, the Bitcoin treasury company he co-founded.
- Tether's proposed merger combining Twenty One, Strike, and Elektron Energy has officially collapsed.
- Twenty One Capital shares fell nearly 15% following Mallers' departure announcement on Tuesday.
- Raphael Zagury, founder of Elektron Energy, named new CEO.
- Twenty One holds 43,514 BTC worth over $4 billion, ranking second among public companies.
The Merger That Wasn't
Tether's proposed merger would have combined Twenty One's treasury operations, Strike's Bitcoin payments and lending platform, and Elektron Energy's mining infrastructure into one publicly traded powerhouse. Tether first pitched the idea in April 2026 at the Bitcoin Conference. The vision was ambitious, but it's now dead.
The collapse marks a major setback for Tether's strategy to consolidate Bitcoin infrastructure under a single umbrella. Tether had already moved aggressively to cement control—in May 2026, the stablecoin issuer bought out SoftBank's roughly 25% stake in Twenty One Capital for approximately $999.3 million.
New Leadership, Uncertain Path
Raphael Zagury, founder of Elektron Energy and a former managing director at Deutsche Bank and Merrill Lynch, has been named Twenty One's new CEO. Strike will remain a standalone company following the merger collapse. Twenty One and Elektron Energy are still in early discussions about a potential two-way deal, but no agreement has been confirmed.
The leadership transition happens at a volatile moment for Twenty One. Company shares hit a 52-week high of $31.51 before sliding to a low of $4.81. The stock's wild swings reflect the uncertainty surrounding the firm's direction.
Bitcoin Holdings Remain Substantial
Twenty One still holds 43,514 BTC worth more than $4 billion at current prices, ranking it second among all public companies for Bitcoin holdings, just behind Michael Saylor's Strategy. Mallers co-founded Twenty One alongside Tether and listed the company on the NYSE in December 2025 through a SPAC merger. Despite the setbacks, the company's balance sheet remains one of the most significant Bitcoin treasuries in the public markets.
