Jack Mallers, the founder of bitcoin-focused investment firm Twenty One Capital, has stepped down as chief executive. Twenty One’s board named Raphael Zagury to replace him.
The shake-up comes as payments firm Strike pulls out of a planned three-way merger that would have combined Twenty One, Strike, and Tether – the stablecoin issuer. The deal, first reported in June, was meant to create a vertically integrated bitcoin finance platform. Tether was the primary backer.
Mallers’ departure and Strike’s exit together indicator the collapse of the original structure. Twenty One will now operate independently under Zagury, a former executive at BitGo and Coinbase. The firm did not disclose whether Tether or Strike retain any ownership stake.
Strike, founded by Mallers as well, had been the distribution and payments leg of the proposed merger. Its withdrawal leaves Twenty One without that channel. Strike itself said it will continue developing its own bitcoin-layer products outside the deal.
Tether’s role in the botched tie-up added a layer of complexity. The stablecoin issuer had provided capital and was expected to contribute treasury management infrastructure. With Strike gone, the remaining pieces no longer fit the original blueprint.
The news is bearishly read for bitcoin in the institutional context. Twenty One was positioning itself as a bridge between traditional finance and bitcoin – a narrative that now lacks a clear CEO and a key partner. Without Strike’s payment rails and Tether’s liquidity, the firm’s near-term growth plan is uncertain.
Investors should watch for Twenty One’s next move: whether Zagury seeks a new strategic partner or pivots the firm away from the merged-vision model entirely. The BTC price reaction will reflect market confidence in bitcoin-native firms navigating broken M&A deals.
Mallers leaves Twenty One as Strike exits Tether-backed Bitcoin merger
Jack Mallers has stepped down as CEO of Twenty One Capital, replaced by Raphael Zagury, as Strike exits a Tether-backed bitcoin merger. This indications potential uncertainty in the collaboration between these key crypto institutions.