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Jack Mallers steps down as CEO of Twenty One Capital, shares tumble 15%‑18%, and Tether’s three‑way Bitcoin merger with Strike and Elektron is cancelled.
Jack Mallers announced his resignation as CEO of Twenty One Capital on July 21, 2026, sending the NYSE‑traded stock down nearly 15% in after‑hours trading and confirming that Tether’s proposed three‑way merger with Strike and Elektron Energy has been scrapped【2】.
| At a glance | |
|---|---|
| Stock move | –15% (after‑hours) |
| Share price impact | –18% on Tuesday, extending an 80% loss from last year’s peak |
| Catalyst | Mallers’ resignation and merger collapse |
| Bitcoin holdings | 43,514 BTC (~$4 bn at current prices) |
Jack Mallers, who co‑founded Twenty One Capital and runs the Bitcoin payments firm Strike, said his “life’s work remains Bitcoin” and will focus exclusively on Strike, which will stay independent【2】. Tether, the majority shareholder of Twenty One, confirmed the leadership change and appointed Elektron Energy founder Raphael Zagury as the new CEO【3】【4】. The original plan, first floated in April 2026, aimed to combine Twenty One’s treasury, Strike’s payments platform, and Elektron’s mining operations under a single publicly listed entity backed by $2.1 bn of credit from Tether【5】. With Strike exiting the deal, the three‑way merger is officially dead, though Twenty One and Elektron may still explore a two‑way combination【4】【3】.
Twenty One Capital entered the market in December 2025 with 43,500 BTC and quickly became the world’s second‑largest corporate Bitcoin holder, behind Strategy, Inc.’s 818,334 BTC【1】. At current prices the Bitcoin stash is valued at over $4 bn, a figure that underpins the company’s valuation and has attracted retail investors seeking indirect exposure to the cryptocurrency【2】. The stock’s 52‑week high of $31.51 has fallen to a low of $4.81, reflecting broader skepticism toward Bitcoin treasury firms after a steep decline of more than 80% from last year’s peak【2】. Mallers’ departure and the merger collapse intensified this skepticism, driving the recent share‑price drop.
With the merger off the table, Twenty One’s revised strategy will focus on acquiring operating businesses, expanding capital‑markets capabilities, and developing Bitcoin‑backed lending, according to the company’s latest statements【3】. The firm’s large Bitcoin balance remains a core asset, but future growth will depend on how effectively it can generate cash flow and allocate capital under Zagury’s “institutional discipline” approach【2】. The market will watch whether the two‑way talks with Elektron materialize into a deal that can sustain the company’s growth trajectory.
Mallers’ exit underscores the fragility of ambitious consolidation plans in the crypto‑treasury space, leaving Twenty One Capital to navigate a path forward without the anticipated synergies of a unified Bitcoin powerhouse. The next weeks will reveal whether a pared‑down strategy can preserve investor confidence.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 5 outlets · Jul 21, 2026 · How we report
The merger of Twenty One, Strike, and Elektron Energy was officially abandoned, with Strike remaining independent and Twenty One and Elektron still in early talks without a confirmed deal.
Twenty One holds 43,514 BTC, valued at over $4 billion based on current market prices.
Shares of Twenty One fell nearly 15% on the day of Mallers' resignation, extending a broader decline in the stock.
Raphael Zagury, founder of Elektron Energy, was named the new CEO of Twenty One.
Tether bought out SoftBank’s roughly 25% stake in Twenty One, consolidating its control over the company.