Jack Mallers resigns as Twenty One Capital CEO after Tether gains

Jack Mallers announced his voluntary resignation as CEO of Twenty One Capital on Monday, coinciding with Tether’s May 20 acquisition of SoftBank’s 25 % stake, which leaves the Bitcoin treasury firm effectively under Tether’s sole ownership [2]. The leadership change and the aborted merger with Mallers’ payments firm Strike signal a strategic shift for the NYSE‑listed vehicle, now valued at about $1.85 billion after a 43 % YTD decline.

Ownership consolidation and abandoned merger

Tether’s purchase of SoftBank’s entire stake removed the last external block from Twenty One’s three‑party founding structure, turning the company into what Tether describes as its “public Bitcoin operating arm” [1]. The deal, announced on May 20, did not disclose a price, but it eliminated SoftBank’s board representation per the shareholder agreement. Earlier in April, Tether had proposed a three‑way merger that would combine Twenty One’s Bitcoin treasury, Mallers’ Strike payments platform, and Elektron Energy’s mining operations into a single Bitcoin‑focused entity. That plan was scrapped less than 12 weeks after its announcement, leaving Strike independent and keeping Elektron talks in early stages [2].

New strategic direction under Raphael Zagury

Following Mallers’ exit, former Goldman Sachs and Deutsche Bank executive Raphael Zagury took the helm, emphasizing cash‑flow generation and disciplined capital allocation over pure Bitcoin accumulation. Zagury likened the revised model to Berkshire Hathaway, indicating a focus on lending against Bitcoin holdings rather than expanding the treasury itself [2]. Despite the shift, Twenty One still retains 43,514 BTC, positioning it as the second‑largest corporate Bitcoin treasury after Strategy, according to BitcoinTreasuries.net data [2].

Market reaction and valuation impact

The stock closed at $5.32 on Monday, reflecting a 43 % drop in its value for the year and a market cap of roughly $1.85 billion [2]. This valuation contrasts with the implied $3.6 billion enterprise value estimated at the company’s April 2025 launch, when it was projected to hold more than 42,000 BTC at an 84‑day average Bitcoin price [1]. The price decline mirrors broader weakness in digital‑asset treasury firms, which have faced losses and job cuts after Bitcoin’s recent price slump, as reported by Bloomberg [2].

What to watch

• Bitcoin price levels: A sustained move above $30,000 could revive interest in expanding the treasury, while a drop below $25,000 may pressure the share price further.
• Elektron Energy talks: Progress on a potential mining partnership could signal a return to the original merger concept.
• Regulatory developments: Any U.S. SEC rulings on Bitcoin‑related ETFs may affect Tether’s broader strategy and, by extension, Twenty One’s market perception.

The resignation underscores a pivot from a founder‑driven, merger‑focused vision to a more institutionally disciplined, cash‑flow‑oriented model. How the new leadership balances Bitcoin holdings with broader financial services will shape the firm’s role in the evolving corporate Bitcoin landscape.