Jack Mallers steps down as XXI Capital CEO as Tether's three-way bitcoin merger collapses

Jack Mallers has stepped down as CEO of publicly traded bitcoin company Twenty One Capital (XXI), choosing to focus entirely on Strike, the bitcoin payments company he founded. The resignation took effect on July 20, 2026.

What the Original Plan Looked Like

In late April 2026, Tether Investments, XXI's majority shareholder, proposed merging the company with two other assets at once — the payments platform Strike and large-scale bitcoin miner Elektron Energy. If completed, the deal would have created a single public entity combining bitcoin treasury holdings, mining, financial services, lending, capital markets, and an M&A function all under the XXI ticker. XXI shares rose 8% on news of the proposed merger.

In May 2026, Tether bought out SoftBank's stake in XXI, gaining full control of the company — a move many read as preparation for the final stage of the asset combination.

Why the Deal Fell Apart

However, the proposed three-way merger between Twenty One Capital, Strike, and Elektron Energy has since been abandoned, with Strike no longer participating. Separately, observers pointed to a structural conflict of interest baked into the deal itself — Mallers simultaneously ran both XXI and Strike, effectively sitting on both sides of the negotiating table.

Who's Taking Over

Twenty One Capital's new CEO is Raphael Zagury, a board member and founder of the bitcoin miner Elektron Energy. The company is now weighing a more modest two-way combination — with Elektron Energy alone — as it revises its corporate strategy following the collapse of the original three-way plan.

Market Reaction

XXI shares showed minimal movement on news of Mallers' resignation, trading around $5.37 in premarket action — down sharply from a peak above $30 during last summer's frenzy around digital asset treasury companies.

Why It Matters

The XXI Capital story is a telling example of how ambitious plans to consolidate a bitcoin business under the wing of one large investor (Tether, in this case) can run into far more mundane obstacles — structural conflicts of interest and disagreements between the parties to the deal. Mallers' departure at the exact moment the three-way deal collapsed suggests he chose to concentrate his efforts on a single company rather than keep control of two assets whose combined future had become uncertain.

This material is for informational purposes only and is not investment advice.