{"id":549327,"date":"2026-07-21T17:00:18","date_gmt":"2026-07-21T16:00:18","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=549327"},"modified":"2026-07-21T17:02:52","modified_gmt":"2026-07-21T16:02:52","slug":"jack-mallers-leaves-twenty-one-as-strike-tie-up-ends-and-bitcoin-treasury-pressure-builds","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/jack-mallers-leaves-twenty-one-as-strike-tie-up-ends-and-bitcoin-treasury-pressure-builds\/","title":{"rendered":"Jack Mallers leaves Twenty One as Strike tie-up ends and Bitcoin treasury pressure builds"},"content":{"rendered":"<p>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.<\/p>\n<p>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 <a href=\"https:\/\/cryptoslate.com\/digital-asset-treasuries\/\">corporate Bitcoin treasuries<\/a> as weaker prices and tighter financing test the wider sector.<\/p>\n<p>Mallers <a href=\"https:\/\/x.com\/jackmallers\/status\/2079543739815497742?s=46\">said he had decided to step down<\/a> after the role clarified what he wanted to build. \u201cMy life's work remains Bitcoin. My Bitcoin company is Strike. The work continues,\u201d he wrote.<\/p>\n<p><a href=\"https:\/\/cryptoslate.com\/coins\/tether\/\">Tether, Twenty One\u2019s controlling shareholder<\/a>, <a href=\"https:\/\/tether.io\/news\/raphael-zagury-appointed-as-new-ceo-of-twenty-one-capital-jack-mallers-to-step-down\/\">confirmed<\/a> that Zagury would succeed Mallers and that the companies were working toward an orderly handover.<\/p>\n<h2>The Strike combination is no longer on the table<\/h2>\n<p>The split closes off a strategy Twenty One outlined less than three months ago.<\/p>\n<p>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.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/tether-just-moved-4-billion-bitcoin-for-twenty-one-but-the-chain-data-reveals-a-deceptive-liquidity-trap\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Tether just moved $4 billion Bitcoin for Twenty One, but the chain data reveals a deceptive liquidity trap<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>The plan was never a completed deal. Twenty One\u2019s <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/2070457\/000121390026055938\/ea0287897-10q_twentyone.htm\">March-quarter filing<\/a>, filed in May, said there were no binding commitments or agreements for either acquisition and that its board had not approved a transaction.<\/p>\n<p>Tether\u2019s 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. 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.<\/p>\n<p>Twenty One is still one of the largest corporate Bitcoin holders. Its historical March 31 balance-sheet snapshot quantifies the exposure Zagury inherits.<\/p>\n<p>As of March 31, the company reported 43,514 BTC with a fair value of about $2.95 billion, along with approximately $114.1 million in cash. Those figures are a dated quarterly snapshot, not a current July balance.<\/p>\n<p>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. The loss did not, by itself, represent an equivalent cash outflow, but it showed how directly Twenty One\u2019s reported results move with Bitcoin.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/bitcoin-treasury-already-faced-two-collateral-calls-in-2026-and-some-loans-leave-just-12-hours-to-the-liquidation-line\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Bitcoin treasuries already faced two collateral calls in 2026 and some loans can liquidate after just 12 hours<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>The data show the scale of the treasury model Zagury is being asked to develop. Twenty One has said it wants to increase Bitcoin per share while building financial services, lending, capital markets products and other cash-generating operations around its holdings.<\/p>\n<p>In Tether\u2019s announcement, Zagury said Twenty One should be measured by the cash flow it produces and the discipline with which it allocates capital. Tether CEO Paolo Ardoino also emphasized Zagury\u2019s experience building businesses with cash flow and disciplined execution.<\/p>\n<p>The mandate shifts the performance test beyond the size of the Bitcoin stack.<\/p>\n<h2>Treasury financing raises the stakes<\/h2>\n<p>That emphasis arrives during a difficult market for companies financing large Bitcoin holdings.<\/p>\n<p>Businesses that presented Bitcoin as a permanent reserve have had to weigh debt payments, collateral requirements, dividends and buybacks against continued accumulation. As <a href=\"https:\/\/cryptoslate.com\/the-never-sell-bitcoin-treasury-trade-is-seriously-starting-to-crack\/\">CryptoSlate reported in May<\/a>, those obligations can turn Bitcoin from a passive reserve into a source of corporate liquidity when financing conditions tighten.<\/p>\n<p>Pressure has also reached the securities treasury companies use to raise money. Major treasury-linked preferred shares traded below their stated value during a June selloff, even as dividends continued and the market remained operational.<\/p>\n<p>This month, <a href=\"https:\/\/cryptoslate.com\/bitcoins-10-billion-credit-market-keeps-growing-after-its-first-major-selloff\/\">new corporate Bitcoin credit initiatives were still moving forward<\/a>, leaving investors to assess whether the financing structures can endure prolonged volatility.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/one-bitcoin-treasurys-paper-loss-just-made-strategys-stress-everyones-problem\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">One Bitcoin treasury\u2019s paper loss just made Strategy\u2019s stress everyone\u2019s problem<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>Those conditions are not Twenty One\u2019s stated reason for the leadership change. Mallers described his departure as a decision to focus on Strike, and Tether framed the handover as the end of the company\u2019s founding chapter.<\/p>\n<p>They do, however, make Zagury\u2019s cash-flow and capital-allocation mandate more immediate. A treasury can grow when capital is readily available, and <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin is rising<\/a>. Building a durable listed company through a downturn requires operating cash flow and financing structures that do not rely entirely on a higher Bitcoin price.<\/p>\n<p>With Strike remaining independent, Twenty One now has to prove that its Bitcoin balance sheet can support that broader business on its own.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Raphael Zagury inherits a large Bitcoin balance sheet and a mandate to prove it can support a durable business.<\/p>\n","protected":false},"author":1264,"featured_media":549347,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[80573,77968,5789,29],"tags":[81073,76769,78295,77433,75695,78557,76896,80420],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Jack Mallers leaves Twenty One as Strike tie-up ends and 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