XXI stock plunges 18% after CEO's abrupt exit
Jack Mallers is stepping away from second largest Bitcoin corporate treasury company just months after unveiling an ambitious plan to reshape the industry's public markets.
The Twenty One Capital (NYSE: XXI) co-founder said on Tuesday that he resigned as CEO after a strategic disagreement with the company's board over its long-term direction.
Shares of Twenty One Capital (XXI) fell nearly 18% on July 21 to around $4.37 as investors digested both the leadership change and the collapse of a broader expansion strategy.
Twenty One Capital (ticker XXI) is a Bitcoin-native company built to accumulate and hold Bitcoin as its core treasury strategy, led by Jack Mallers and backed by Tether, Bitfinex and SoftBank. It went public through a SPAC merger with Cantor Equity Partners, positioning itself as a Bitcoin-accumulation vehicle rivaling Michael Saylor's Strategy.
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When Tether unveiled its vision for Twenty One in April, the plan extended far beyond building another Bitcoin treasury company.
The stablecoin issuer proposed combining Twenty One Capital, Strike and Elektron Energy into a single publicly traded Bitcoin company.
Under the proposal, Twenty One would contribute its Bitcoin treasury, Strike would add its Bitcoin payments and lending business, and Elektron would provide large-scale Bitcoin mining infrastructure.
The combined company was designed to become one of the largest Bitcoin-focused public firms spanning treasury management, mining and financial services.
That vision is no longer moving forward.
Bloomberg reported on July 21 that Strike will remain an independent company, while Twenty One and Elektron continue discussions on future collaboration.
Despite the leadership change, Twenty One remains the world's second-largest corporate Bitcoin holder with 43,514 BTC, according to BitcoinTreasuries.
New CEO Raphael Zagury signaled the company's next phase will focus less on simply accumulating Bitcoin and more on building an operating business.
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"My job is to build the company around it — with the discipline, governance, and operating rigor of an institution," Zagury said after his appointment.
"Going forward, XXI should be measured by the cash flow it generates and the discipline with which it allocates capital."
The shift reflects a broader trend among Bitcoin treasury firms, which are increasingly being judged on governance, capital allocation and sustainable cash flow rather than the size of their Bitcoin holdings alone.
Tether CEO Paolo Ardoino endorsed the transition, describing Zagury as "one of the best operators in this industry" with experience building businesses with "strong cash flows and disciplined execution."
Mallers confirmed on July 21 that he chose to step down because he and Twenty One's board no longer shared the same vision for building the company.
"When I helped start 21, I thought we had an opportunity to build... not only a company built with Bitcoin on its balance sheet, but also a company with Bitcoin businesses producing cash flow built alongside of it," he said in a video statement.
He said the disagreement centered on execution rather than conflict.
"Over time, it became clear that the board and I did not agree on the path toward building for that vision. Not in bad faith, not because anyone was wrong."
Mallers will remain CEO of Strike, saying his focus is returning to building products for everyday Bitcoin users.
"My life's work remains Bitcoin. The home where I do that work remains Strike."
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This story was originally published by TheStreet on Jul 21, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.