#Why Did Jack Mallers Leave Twenty One Capital?
Jack Mallers has stepped down as CEO of Twenty One Capital as of July 21, 2026. Raphael Zagury, the founder and CEO of Elektron Energy, will take over the role. Despite this change, Mallers remains the CEO of Strike, a prominent payments platform utilizing the Lightning Network, which has contributed to his reputation within the crypto industry.
#What is the Status of Twenty One Capital?
Twenty One Capital, established in April 2025, was positioned as a Bitcoin-native public company, launching with a significant asset base of over 43,000 BTC. The company was formed through a Special Purpose Acquisition Company (SPAC) merger with Cantor Equity Partners, with Tether as a major stakeholder. This structure aimed to provide traditional investors access to Bitcoin through a publicly traded vehicle. However, upon its NYSE listing in December 2025 under the ticker $XXI, the value of its shares experienced a notable drop.
In May 2026, Tether bolstered its control by acquiring SoftBank’s stake in Twenty One Capital, now overseeing approximately 43,500 BTC on the company’s balance sheet. This majority ownership adds a layer of strategy for Tether, the issuer of the leading stablecoin.
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#Why Won't the Proposed Merger Happen?
The anticipated merger between Twenty One Capital, Strike, and Elektron Energy has been called off. This merger was designed to integrate Bitcoin treasury management, Lightning Network payment infrastructure, and energy operations into a unified entity. With Mallers’ departure, the rationale behind the merger has weakened, as he was a pivotal figure linking these diverse businesses.
#What Does This Mean for Investors in Twenty One Capital?
The cancellation of the merger diminishes one of the company’s previously identified strengths, which was its innovative approach combining different technological aspects. Without the payments component presented by Strike, Twenty One Capital will now resemble a classical Bitcoin holding entity. This shift places it in direct competition with other publicly traded Bitcoin treasury firms, including Strategy, which continues to hold the most extensive corporate Bitcoin assets globally.
Investors who initially purchased shares of $XXI based on the original strategic vision are now faced with a new CEO and a realigned company focus. With Tether influencing the governance of the firm, it raises questions about the future direction of the company and the benefits to shareholders. The initial decline following the NYSE listing reflects the market's unease about this transition.