Jack Mallers is stepping down as CEO of Twenty One Capital, the Bitcoin-focused firm he founded, to focus on Strike. Raphael Zagury will take over as CEO. The company is also abandoning its planned merger with Strike, a deal announced less than three months ago on April 29.
New CEO, new direction
Zagury steps into the role as Twenty One shifts its focus. The company's new mandate is cash flow generation and disciplined capital allocation — not just stacking Bitcoin. Tether is Twenty One's controlling shareholder. Tether CEO Paolo Ardoino highlighted Zagury's experience building cash-flow businesses. The merger with Strike is dead.
Bitcoin holdings and the balance sheet
As of March 31, Twenty One held roughly 43,514 BTC, with a fair value of about $2.95 billion. It also had $114.1 million in cash. But the quarter wasn't kind. The company recorded an $847.8 million fair-value loss on its Bitcoin position. That loss is non-cash — it doesn't represent an equivalent cash outflow — but it still hits the books.
And there are real cash pressures. Bitcoin treasuries faced two collateral calls in 2026. Some loans can liquidate after just 12 hours. Treasury financing conditions are difficult. Companies are juggling debt payments, collateral requirements, dividends, and buybacks. Major treasury-linked preferred shares traded below stated value during a June selloff.
Twenty One is now focused on generating cash flow, not just growing its Bitcoin stack. New corporate Bitcoin credit initiatives are still moving forward, but the environment is tight. The company has to navigate its debt and collateral obligations under a tougher market. Zagury's job is to make the numbers work.
