Jack Mallers stepped down as CEO of Twenty One Capital (XXI) on July 21, 2026, after just seven months in the role. The departure comes as Tether formally abandoned its plan to merge the Bitcoin treasury firm with Strike, Mallers' payments company. Raphael Zagury, a veteran of Goldman Sachs, Deutsche Bank, and Merrill Lynch, has been appointed as the new CEO.
The CEO change
Mallers' exit was effective immediately. He had taken the top job in December 2025, but the company's direction shifted after Tether bought out Strike's 25% stake in May 2026, giving the stablecoin issuer full control. Zagury steps in with a mandate to refocus the business. XXI's new strategic priorities no longer include buying more Bitcoin. Instead, the firm is targeting cash flow generation.
Tether's retreat
Tether's decision to scrap the merger with Strike ends a months-long effort to combine the two entities. The deal had been seen as a way to integrate Strike's payments infrastructure with XXI's Bitcoin holdings. But sources close to the matter say the integration proved too complex, and Tether opted to keep the companies separate. The move leaves Strike as an independent payments firm, while XXI operates under Tether's full ownership.
XXI's new direction
Twenty One Capital remains the second-largest corporate Bitcoin treasury after Strategy, holding 43,514 BTC. But the stock has taken a beating. XXI closed at $5.32 on the NYSE, down about 43% year-to-date. The market cap sits at roughly $1.85 billion. The pivot away from Bitcoin accumulation marks a sharp reversal from the strategy that defined the company under Mallers. Zagury's background in traditional finance suggests a more conservative approach. A potential deal with Bitcoin mining firm Elektron Energy is still in early talks, but no timeline has been set.
Market context
Bitcoin's price slump has hit the digital asset treasury sector hard. Several firms have reported losses and job cuts this year. The pressure to generate cash flow rather than hoard BTC reflects a broader shift as companies try to weather the downturn. For XXI, the next few months will be about proving the new strategy works — and whether Zagury can steady the ship.
Zagury's immediate task is to stabilize the company and explore the potential deal with Elektron Energy. Investors will be watching for any signs of a turnaround, but the road ahead looks rocky.
