Jack Mallers steps down as Twenty One Capital CEO as Tether merger collapses

Jul 21, 2026

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.