XXI Stock Drops 18% as CEO Mallers Exits, Tether Merger Abandoned
Twenty One Capital shares plummeted after founder Jack Mallers resigned and the company abandoned Tether's plan to create a massive, merged Bitcoin conglomerate, forcing a strategic pivot toward operating businesses.
Jack Mallers resigned as chief executive of Twenty One Capital on Tuesday following a strategic disagreement with the board, abruptly ending his tenure at the second-largest corporate holder of Bitcoin. The leadership upheaval immediately punished the stock, with shares plunging 18% to $4.37.
The departure effectively scuttles an ambitious industry consolidation plan unveiled just months ago. In April, stablecoin issuer Tether proposed merging Twenty One Capital, its payments affiliate Strike, and mining infrastructure company Elektron Energy into a single, publicly traded Bitcoin conglomerate. Under that blueprint, Twenty One would supply the treasury, Strike would handle Bitcoin payments and lending, and Elektron would provide large-scale mining capabilities. The combined entity was designed to rival Michael Saylor’s Strategy by creating a firm spanning the digital asset sector.
That three-way combination is now dead. Strike will remain an independent company, while Twenty One and Elektron are left discussing only a narrower form of future collaboration. For a firm that went public via a SPAC merger with Cantor Equity Partners and counts Tether, Bitfinex, and SoftBank among its backers, the unwinding of this deal removes a critical catalyst for long-term valuation.
Incoming CEO Raphael Zagury is now tasked with resetting the company's trajectory. Twenty One Capital currently holds 43,514 BTC in its treasury, but Zagury signaled that the firm’s next phase will pivot away from merely accumulating the token. "My job is to build the company around it — with the discipline, governance, and operating rigor of an institution," Zagury said.
This strategic pivot carries significant implications for shareholders. The market initially rewarded the concept of a bundled Bitcoin powerhouse, but investors must now price XXI based on its ability to generate returns as an operating business rather than relying on pure balance sheet appreciation. Rebuilding market credibility and outlining a concrete operational roadmap will be Zagury's immediate priority to stabilize the stock and justify the company's public valuation.
