Jack Mallers has stepped down as chief executive of Twenty One Capital, the Tether-controlled Bitcoin treasury company he helped launch, as a proposed merger involving Strike, Twenty One, and Elektron has started to come apart.
In a video statement posted on X, Mallers said he had decided to leave Twenty One and return to Strike, the Bitcoin financial-services company he founded. He connected his departure to a disagreement over direction, saying that over time, he and the board did not agree on the path toward building for that vision. Mallers described the separation as amicable and said no one had acted in bad faith.
Zagury takes over as CEO
Twenty One said its board appointed Raphael Zagury as chief executive effective July 20. Zagury is the founder and CEO of Bitcoin miner Elektron Energy and already served as a director at Twenty One.
According to the company, Zagury and Mallers are working together on an orderly transition.
Strike exits Tether Investments’ three-way merger proposal
The leadership change came alongside confirmation that Strike is withdrawing from Tether Investments’ proposed three-way merger. The deal had been designed to fold Twenty One, Strike, and Elektron into a single listed platform covering treasury, mining, financial services, and capital markets.
Twenty One now says Strike will remain independent and is no longer part of the merger plan. A possible two-way combination with Elektron is still under evaluation, but the company said it remains at a preliminary stage and there is no assurance the transaction will be completed.
Twenty One sets out a revised strategy
At the same time, Twenty One outlined a refreshed strategy centered on operating businesses, disciplined capital allocation, and Bitcoin-backed lending.
In a statement shared by Twenty One, Zagury said, “My job is to build the operating company around it, with the discipline, governance, and executional rigor of an institution.”
He added, “I believe our business will perform best when we also focus on the cash flow we generate and the rigor with which we allocate capital, not only by the Bitcoin we hold.”