Key highlights:

  • Jack Mallers has resigned as CEO of Twenty One Capital after a conflict in company direction with the board
  • Mallers will throw his weight behind Strike to build Bitcoin-focused products for consumers
  • XXI stock has tumbled by double digits since the announcement

Jack Mallers has confirmed his exit as CEO of Twenty One Capital (XXI), one of the largest Bitcoin treasury companies. Mallers disclosed that a raft of internal disagreements forced his hand to step down from the Tether-backed company after over one year at the helm.

Jack Mallers resigns as Twenty One Capital CEO

According to an official statement, Jack Mallers is stepping down as CEO at Twenty One Capital, a Bitcoin treasury company that he founded in 2025. The company appointed Raphael Zagury as the new CEO, with the statement confirming that Mallers is working with the new leadership to “ensure an orderly transition.”

While XXI’s announcement did not offer details behind the exit, the company stated that Mallers will now focus on Strike, his Bitcoin-focused payment company. However, in a personal announcement, Mallers pointed to disagreements with Twenty One Capital’s board over the company’s direction.

Mallers argued that at the start, he intended to build a bitcoin-holding company with businesses producing cash flow built alongside it. Mallers noted that while the board agreed to the vision, they failed to reach a consensus on the blueprint to achieve the targets.

“Over time, it became clear that the board and I did not agree on the path toward building for that vision,” said Mallers.

Back in April, Twenty One Capital announced its intention to merge with Strike and Elektron Energy. The new entity will operate as a Bitcoin-native platform cutting across financial services, capital markets, mining infrastructure, and treasury.

Following Mallers’ exit, Strike is no longer under consideration for a business combination with Twenty One Capital. At press time, XXI had dropped by 13% as trading opened on Tuesday, with Mallers’ exit as CEO triggering bearish sentiments. 

On the company’s first trading day in late 2025, XXI tanked by over 20%, but market watchers continue to watch for signals of a repeat of its trading debut.

Twenty One Capital to expand its scope

Despite Mallers leaving the company, Twenty One Capital revealed a blueprint for a Bitcoin-native operating company. According to the statement, the company is mirroring the model put forward by Warren Buffett’s Berkshire Hathaway, acquiring “high-quality operating businesses” that leverage its balance sheet.

“Apply a disciplined acquisition framework in which the expected return on any acquisition of businesses, infrastructure, or talent is accretive, using Bitcoin as the Company’s investment benchmark,” read the statement.

There are plans to develop Bitcoin-backed financial products that are supported by durable operating cash flows. At the top of the pyramid is a plan to build a lending and credit platform for Bitcoin holders to access liquidity without selling their assets.

Twenty One Capital holds 43,514 BTC on its balance sheet, valued at $2.9 billion at current prices. The company is the second-largest corporate Bitcoin holder behind Michael Saylor’s Strategy, with a staggering 843,775 BTC.

Source: BitcoinTreasuries.Net