Jack Mallers leaves Twenty One as Strike tie-up ends and Bitcoin treasury pressure builds

A notable development has hit the crypto markets. Jack Mallers is stepping down as chief executive of Twenty One Capital to focus on Strike, while Twenty One and the Bitcoin payments company abandon a contemplated combination. Raphael Zagury, a Twenty One board member with experience in capital markets and Bitcoin infrastructure, will take over as CEO. The change puts him in charge of building cash-generating operations around one of the largest corporate Bitcoin treasuries as weaker prices and tighter financing test the wider sector.

Mallers said he had decided to step down after the role clarified what he wanted to build. “My life's work remains Bitcoin. My Bitcoin company is Strike.

Market Dynamics

The work continues,” he wrote. Tether, Twenty One’s controlling shareholder, confirmed that Zagury would succeed Mallers and that the companies were working toward an orderly handover. The Strike combination is no longer on the table The split closes off a strategy Twenty One outlined less than three months ago.

On April 29, the company announced an operating plan centered on possible acquisitions of Strike and Elektron, a Bitcoin mining and energy infrastructure business associated with Zagury. Related Reading Tether just moved $4 billion Bitcoin for Twenty One, but the chain data reveals a deceptive liquidity trap Traders mistaking this 43,033 BTC custody transfer for a fresh buy order risk misinterpreting the flow, as the coins were sourced and priced long before the alert. Dec 8, 2025 Liam 'Akiba' Wright The plan was never a completed deal.

Twenty One’s March-quarter filing, filed in May, said there were no binding commitments or agreements for either acquisition and that its board had not approved a transaction. Tether’s announcement says Twenty One and Strike are no longer contemplating a combination because Strike is best positioned as an independent business. That makes the transition more consequential than a simple change at the top.

Market Impact

Mallers is returning his attention to Strike, while Twenty One must develop its operating model without the payments company that had been central to its expansion proposal. Twenty One is still one of the largest corporate Bitcoin holders. Its historical March 31 balance-sheet snapshot quantifies the exposure Zagury inherits.

As of March 31, the company reported 43,514 BTC with a fair value of about $2. 95 billion, along with approximately $114. Those figures are a dated quarterly snapshot, not a current July balance.

The same filing recorded a rounded $847. 8 million fair-value loss on the Bitcoin position during the quarter. It also said approximately 16,116 BTC were pledged as collateral to convertible notes.

This shift continues to shape the digital-asset landscape, with analysts examining its near-term effects.