Jack Mallers exits Twenty One; Raphael Zagury to lead

Jack Mallers stepped down as chief executive of Twenty One Capital to refocus on his payments firm Strike. The two companies are no longer pursuing a planned combination. Raphael Zagury, a Twenty One board member with experience in capital markets and Bitcoin infrastructure, will replace Mallers as CEO. Tether, Twenty One’s controlling shareholder, confirmed the leadership change and said the firms are coordinating an orderly handover.

Mallers wrote, “My life’s work remains Bitcoin. My Bitcoin company is Strike. The work continues.” Tether stated Strike is best positioned to operate independently and withdrew the acquisition plans Twenty One outlined on April 29.

On April 29 Twenty One disclosed an operating plan focused on potential acquisitions of Strike and Elektron, a Bitcoin mining and energy infrastructure business linked to Zagury. Twenty One’s March-quarter filing, submitted in May, said there were no binding commitments or agreements for either acquisition and that the board had not approved a transaction.

As of the March 31 balance-sheet snapshot reported in May, Twenty One held 43,514 BTC with a fair value of about $2.95 billion and roughly $114.1 million in cash. The filing recorded an $847.8 million fair-value loss on the Bitcoin position during the quarter and said about 16,116 BTC were pledged as collateral to convertible notes. The filing noted the fair-value loss reflected accounting valuation changes rather than cash outflows.

Zagury will be responsible for developing operations around the company’s Bitcoin treasury. Zagury wrote that Twenty One “should be measured by the cash flow it produces and the discipline with which it allocates capital.” Paolo Ardoino, Tether’s CEO, highlighted Zagury’s record of building businesses with a focus on cash flow and capital discipline.

Companies that hold Bitcoin as a corporate reserve balance debt payments, collateral requirements, dividends and buybacks with any plan to continue accumulating coins. Treasury-linked preferred shares traded below their stated values during a June market selloff while dividends continued to be paid. New corporate Bitcoin credit initiatives progressed in recent weeks.

With Strike remaining independent, Twenty One will proceed with its operating plan under Zagury’s leadership. Tether described the handover as the end of the company’s founding chapter and noted the firms are arranging an orderly transition.