CoinDesk
Tether-controlled Twenty One Capital (XXI) named Raphael Zagury as CEO effective July 20, replacing Jack Mallers, who is stepping down to refocus on the bitcoin payments firm he founded. The leadership change coincides with the collapse of Tether's April proposal to merge Twenty One, Strike, and Elektron Energy into a single listed bitcoin vehicle; Strike is no longer participating in any business combination.
The reshuffle leaves Twenty One weighing a narrower two-way combination with Elektron Energy as it rewrites its corporate strategy. Tether, Twenty One's controlling shareholder, confirmed the changes in a separate announcement.
Why it matters
The original three-way structure was designed to consolidate bitcoin treasury, payments, and mining under one listed roof, an unusually ambitious corporate bet for the crypto sector. Strike's exit narrows the thesis materially: a payments business, a treasury play, and a mining operation pulled apart before any deal closed. Mallers returning to Strike at least preserves the payments arm as an independent entity, but it shifts the burden of execution back onto Twenty One.
Market impact
Twenty One's revised roadmap leans toward acquiring operating businesses, expanding capital markets capabilities, and developing bitcoin-backed lending rather than the original roll-up. XXI shares were little changed in pre-market trading on the news, suggesting investors are treating the reset as a strategy decision rather than a valuation event. The next datapoint is whether the two-way Elektron combination closes or whether Twenty One opts for a clean independent path under Zagury.
Frequently asked questions
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Why is Jack Mallers leaving Twenty One Capital?
Mallers stepped down as XXI CEO effective July 20 to return full-time to Strike, the bitcoin payments firm he founded. Strike also exited a proposed three-way merger with Twenty One and Elektron Energy.
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Who replaced Mallers as Twenty One Capital CEO?
Twenty One Capital appointed Raphael Zagury as the new CEO, replacing Mallers and signalling a revised corporate strategy under Tether's continued control as the dominant shareholder.
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What happened to the proposed XXI, Strike, and Elektron merger?
Tether's April proposal to combine Twenty One Capital, Strike, and Elektron Energy into a single listed bitcoin vehicle has been abandoned. Strike is no longer participating in any business combination.
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Will Twenty One still combine with Elektron Energy?
Yes, in a narrower form. Twenty One is weighing a potential two-way combination with Elektron Energy after Strike dropped out of the original three-way structure.
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How is Twenty One Capital changing its strategy?
Twenty One's revised plan focuses on acquiring operating businesses, expanding capital markets capabilities, and developing bitcoin-backed lending, rather than the original three-company roll-up.
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