Jack Mallers, the outspoken founder of Strike, has stepped down as Chief Executive Officer and director of Twenty One Capital (XXI), the Tether-backed Bitcoin treasury firm. His departure, effective July 20, 2026, was announced yesterday, July 21, and comes months after he publicly challenged the sustainability of certain corporate Bitcoin treasury strategies, including those employed by Michael Saylor’s MicroStrategy, now known as Strategy.
Raphael Zagury, co-founder and CEO of Elektron Energy, who has served on Twenty One Capital’s board since December 2025, will immediately take over as CEO. Mallers cited fundamental disagreements with the board over the company’s future direction, emphasizing a desire for a cash-flow-generating model over pure Bitcoin accumulation, a stance that has reshaped the conversation around corporate Bitcoin holdings.
board disagreement prompts mallers’ exit
Mallers made his decision public via a post on X, confirming that his resignation stemmed from an inability to reach a consensus with the board on Twenty One Capital’s strategic blueprint. He had envisioned a Bitcoin-holding entity that simultaneously built profitable, cash-flow-generating businesses to support its operations, a vision that ultimately diverged from the board’s. He stated he took no severance and forfeited his options.
The company, which began trading on the New York Stock Exchange (NYSE) on December 9, 2025, confirmed the leadership change and appointed Raphael Zagury as the new CEO. Twenty One Capital, a significant player in the corporate Bitcoin space, went public with approximately 43,500 BTC, valued at about $4 billion at the time.
The firm currently holds 43,514 BTC, now worth roughly $2.9 billion as of Tuesday.
This executive shuffle also means the previously proposed three-way merger between Twenty One Capital, Mallers’ Strike, and Elektron Energy has been abandoned. Strike will remain an independent entity, focusing on its core products. However, a potential combination between Twenty One Capital and Elektron Energy is still under evaluation.
tether takes full control of twenty one capital
The strategic shift at Twenty One Capital follows Tether’s move in May 2026 to acquire SoftBank’s entire stake, giving it full control of the firm. Paolo Ardoino, CEO of Tether, also serves as a board member for Twenty One Capital. This move consolidated Tether’s influence over the second-largest corporate Bitcoin treasury.
Incoming CEO Raphael Zagury has already indicated a change in strategic direction for Twenty One Capital. His focus will be on generating cash flow rather than solely acquiring more Bitcoin. This new emphasis suggests a move towards a more diversified and financially self-sustaining model for the company.
mallers’ saylor critiques gain new relevance
Mallers’ departure has reignited discussions around his critical comments directed at Michael Saylor, the Executive Chairman of Strategy (formerly MicroStrategy). Earlier this year at BTC Prague, Mallers publicly challenged Saylor on his company’s use of the mNAV (multiple-to-net-asset-value) metric. This metric supposedly illustrates how much the market is willing to pay for each dollar of Bitcoin held by a treasury firm.
Mallers specifically questioned the practice of classifying “out of the money securities” as equity, arguing that it could artificially inflate the mNAV and make the metric appear more attractive than it actually was. He cited Twenty One Capital’s own convertible bond, which converts to stock at $13 per share, as an example. The company’s stock traded near $5 at the time, making conversion highly unlikely.
Furthermore, Mallers extended his critique to digital credit products, like Strategy’s “Stretch,” which offered investors a high yearly dividend, reportedly 11.5% when Mallers spoke, and later rising to 12% in July. He probed the fundamental question of how such products generate sustained returns without clear, productive economic activity or genuine revenue streams to support them.
These past challenges now resonate more strongly, highlighting his long-held concerns about financial engineering in the Bitcoin treasury sector.
stock tumbles as “rug pull” claims emerge
The market reacted swiftly to the news of Mallers’ exit. Twenty One Capital shares, trading under the ticker $XXI on the NYSE, closed near $4.60 on Tuesday, marking a 13.5% drop in a single day. This downturn means early backers, who invested at $10 per share, have seen their holdings lose more than half their value since the company went public.
The sharp decline prompted some critics on social media platform X to accuse Mallers of a “rug pull” — abandoning shareholders after a significant loss in value. However, Mallers strongly refuted these claims, stating, “Rug pull? Who pulled what rug?
I resigned voluntarily, took no severance, forfeited my options, and walked away because it was the right thing to do.” He also clarified that Twenty One Capital never sold shares via an At-The-Market (ATM) offering while he was CEO, further distancing himself from any manipulative financial practices.
reactions across the bitcoin community
Reactions within the Bitcoin community have been varied. Investor Mike Alfred publicly praised Mallers’ decision as a sign of clarity and strategic alignment, suggesting it highlighted a principled stand. Simon Dixon, founder of BnkToTheFuture, interpreted the move as Mallers completely disengaging from the world of wrapped securities, opting instead for a more direct, transparent Bitcoin approach.
A third group views the situation as a potential warning for the broader digital asset treasury (DAT) sector. They argue that models primarily focused on accumulating Bitcoin and leveraging financial instruments may appear robust during periods of premium growth, but face significant challenges when mNAV metrics compress and capital becomes scarce.
This perspective suggests a need for more sustainable business models that generate their own revenue rather than relying solely on Bitcoin appreciation or complex financial structures.
the race for corporate bitcoin holdings intensifies
The landscape for corporate Bitcoin treasuries continues to evolve. While Twenty One Capital remains a substantial holder with its 43,514 BTC, other players are quickly catching up. Metaplanet, for instance, crossed the 43,000 BTC mark in July, nearly matching Twenty One Capital’s stash.
This tight race could soon see a shift in the rankings of the largest corporate Bitcoin holders, adding another layer of competitive pressure to the sector.
what’s next for twenty one capital and jack mallers
With Raphael Zagury at the helm, Twenty One Capital is poised to embark on a new chapter focused on generating consistent cash flow, rather than simply expanding its Bitcoin holdings. This strategic pivot moves away from the pure “Bitcoin as a treasury asset” model towards integrating profitable operations alongside the digital asset.
It represents a significant test of whether a hybrid approach can outperform strategies built solely on aggressive Bitcoin accumulation.
Meanwhile, Jack Mallers will now dedicate his full attention to Strike, his payment application. His goal there is to build out Bitcoin-focused products, funding these endeavors through organic cash flow rather than dilution or complex financial engineering. This move reinforces Mallers’ long-standing advocacy for practical, cash-flow-driven Bitcoin adoption, contrasting sharply with the financial strategies he openly criticized.
The coming months will be crucial for both entities. Whether Twenty One Capital thrives under its new, cash-flow-oriented model, and whether Mallers’ warnings about the sustainability of certain corporate Bitcoin strategies prove prescient, remains to be seen. The outcomes will undoubtedly influence how other companies approach integrating Bitcoin into their balance sheets and operational frameworks, shaping the broader trajectory of the digital asset treasury sector.