Jack Mallers resigned as co-founder of Twenty One Capital on Tuesday, and Tether's plan to merge three Bitcoin companies officially collapsed — a one-two punch that sent XXI stock down nearly 18%. The twin developments leave the firm without its co-founder and without a deal that was supposed to be its centerpiece. The company confirmed both events in a brief statement but offered no details on the reasons behind either.
Mallers exits
Mallers' resignation was effective immediately. He had been with Twenty One Capital since its founding. The company's statement was brief, offering no explanation for his departure. Mallers did not immediately respond to requests for comment. His departure marks the end of an era for the firm, which he helped build into a notable player in Bitcoin-focused finance.
Merger dead
Tether's plan to combine three Bitcoin companies — a deal that had been in the works for months — is officially off the table. The merger was seen as a way to consolidate Bitcoin mining, custody, and trading under one roof. Its collapse raises questions about Tether's broader ambitions in the Bitcoin ecosystem. Twenty One Capital was a key partner in the deal; without it, the firm loses a major growth driver. Neither Tether nor Twenty One Capital has explained why the deal fell through.
Shares slide 18%
XXI shares fell 17.8% on Tuesday, according to market data. The drop erased gains the stock had made since the merger was first announced. Investors are now left wondering what Twenty One Capital's next move will be. The company has not scheduled an earnings call or issued any guidance. The stock's decline reflects the market's assessment that the firm's near-term prospects have dimmed significantly.
The developments cap a difficult period for Twenty One Capital. The firm had been betting big on the Tether merger to drive growth. Now, with that deal dead and its co-founder gone, the company faces an uncertain future. No timeline has been given for finding a new leader or a new strategic direction. For now, the market is voting with its feet.
