Jack Mallers Leaves Twenty One Capital As Raphael Zagury Takes CEO Role

Jack Mallers has resigned as chief executive and director of Twenty One Capital, leaving the Tether-backed Bitcoin company seven months after its New York Stock Exchange listing.

Board member Raphael Zagury became CEO on July 20. The company’s leadership announcement said Mallers would return his focus to Strike, the Bitcoin payments company he founded, while working with Zagury on the transition.

Twenty One also removed Strike from a proposed business combination that would have brought the payments company and Bitcoin mining operator Elektron Energy under the same public entity. Tether had previously pushed the three-company Bitcoin platform across treasury management, payments, mining and financial services.

Mallers said his plans diverged from the board over how to build operating businesses around the company’s Bitcoin holdings. Twenty One’s regulatory filing said his departure was not connected to disagreements over operations, financial policies, accounting, disclosures or legal matters.

Separation Includes Vested Equity Payments

Mallers said he resigned voluntarily, took no severance and forfeited millions of dollars in options. The separation terms include his final $50,000 monthly payment, $420,455 for vested restricted stock units and $1.15 million for 226,860 shares repurchased by the company.

He will retain 1.52 million vested stock options that can be exercised within 90 days. All unvested options and restricted stock units were forfeited without payment.

Zagury will receive a $600,000 annual salary and can earn a performance bonus of up to $700,000. He previously worked at Goldman Sachs, Merrill Lynch and Deutsche Bank before founding investment bank One Partners and fintech lender OpenCo. He also leads the team managing Elektron Energy.

Twenty One’s governance overhaul follows further pressure on founder-led crypto firms. MVMT Labs recently filed Chapter 11 with up to $10 million in liabilities after token-market disputes and the removal of co-founder Rushi Manche.

Zagury Targets Cash Flow And Bitcoin Lending

Zagury’s strategy will prioritize institutional governance, operating-company acquisitions, capital markets products and a Bitcoin-backed lending platform. Proposed acquisitions will be measured against Bitcoin returns, while operating businesses are expected to generate cash flow without requiring the sale of the underlying treasury.

Twenty One continues to evaluate a combination with Elektron Energy, although no definitive agreement has been signed. Any transaction would require related-party review because Zagury also manages Elektron’s operations.

The company holds 43,514 BTC, worth about $2.89 billion with Bitcoin trading near $66,300. The position remains unchanged as larger rival Strategy retains capital through share issuance, including a recent $263.5 million stock sale.

XXI shares fell 7.6% to $4.92 on Tuesday after touching an intraday low of $4.29. The stock trades about 92% below its April 2025 SPAC-era peak of $59.75.