Jack Mallers has stepped down as CEO of Twenty One Capital after a planned three-way merger with his firm Strike and Elektron Energy, backed by Tether, collapsed. Raphael Zagury takes over as CEO amid a new focus on cash flow, following Mallers' failure to generate profits. The company's stock has fallen over 90% from its 2025 high, and Mallers received a separation package of over $1.6 million in cash.
Mallers separation payment details
- ▪Mallers' cash payment included $1,151,046 for a share repurchase, $420,455 for vested restricted shares, and a final $50,000 salary payment
- ▪Upon his departure, Jack Mallers' unvested options and restricted stock in Twenty One Capital were cancelled
- ▪In total, Jack Mallers' compensation from Twenty One Capital exceeded $2.2 million
Failed revenue generation goals
- ▪The new strategy for Twenty One Capital will focus on acquiring operating businesses, generating cash flow, and disciplined capital allocation
- ▪Mallers' departure was linked to a disagreement with the board over the company's direction and vision
- ▪Under Jack Mallers, Twenty One Capital failed to generate significant cash flow or launch profitable operations as he had publicly promised
- ▪Jack Mallers had previously stated a goal for Twenty One Capital to achieve the same revenue and operating profits as Coinbase
Collapsed Strike merger
- ▪Jack Mallers has stepped down as CEO of Twenty One Capital, effective July 20, 2026, to return his focus to his payments firm, Strike
- ▪Twenty One Capital is now evaluating a potential two-way merger with Elektron Energy, though no agreement is guaranteed
- ▪A proposed three-way merger between Twenty One Capital, Strike, and Elektron Energy, backed by controlling shareholder Tether, has been abandoned
- ▪Following the merger's collapse, Strike will remain an independent company and is no longer being considered for a business combination with Twenty One Capital
- ▪Raphael Zagury, founder of bitcoin miner Elektron Energy and a board member, has been appointed as the new CEO of Twenty One Capital
Twenty One stock decline
- ▪The company's stock has declined more than 80% from its highs of the previous year and 91% from its 2025 high
Forfeited stock options
- ▪Mallers retained 1,522,407 vested options with a strike price of $14.43, which are currently out-of-the-money with the stock trading below $5
- ▪Shares of Twenty One Capital ($XXI) fell nearly 18% on July 21, 2026, following the announcement
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