Jack Mallers Steps Down as XXI Capital CEO as Tether’s Bitcoin Mega-Merger Collapses
Quick Read:
- Jack Mallers steps down as Twenty One Capital CEO effective July 20, returning full-time to Strike
- Raphael Zagury named as new CEO of Twenty One Capital (XXI)
- Tether’s proposed three-way merger of Twenty One, Strike, and Elektron Energy has collapsed
- Strike will now stay independent and is off the merger table entirely
- Twenty One is now eyeing a possible two-way tie-up with Elektron Energy instead
Big shake-up at the top of the bitcoin world today. Jack Mallers steps down as CEO of Tether-controlled Twenty One Capital (XXI), just as the company’s ambitious plan to merge three separate bitcoin businesses into one falls apart.
Mallers officially left the role on July 20 and is heading back to focus on Strike, the bitcoin payments company he founded. According to a press release from Twenty One’s investor relations page, Raphael Zagury has stepped in as the company’s new chief executive.
The exit comes as Tether’s grand plan to combine Twenty One Capital, Strike, and mining firm Elektron Energy into a single listed entity has quietly unraveled. Strike will now remain an independent company and is no longer being considered for the business combination with Twenty One. Tether, which controls Twenty One as its majority shareholder, confirmed the shift in its own statement.
This is a major reversal from April, when Tether first proposed merging Twenty One, Strike, and Elektron in a bid to stack bitcoin treasury holdings, financial services, and mining operations under one roof. That plan is now dead in its original form.
So what’s next for Twenty One Capital now that Jack Mallers steps down and the merger is off the table? The company says its revised strategy will lean into acquiring operating businesses, building out capital markets capabilities, and pushing further into bitcoin-backed lending. There’s also a possible two-way combination with Elektron Energy still on the table, though nothing is confirmed yet.
Markets, for now, seem unbothered — XXI shares were little changed in pre-market trading following the news. CoinDesk noted it reached out to all three companies involved but had not received a response at the time of publishing.
It’s a notable moment for Mallers, who built Strike into one of the most recognizable names in bitcoin payments before taking on the XXI role. His return to Strike full-time suggests the payments firm may be doubling down on independence rather than folding into a larger conglomerate structure.
