Jack Mallers is stepping down as CEO of Twenty One Capital to focus on Strike, while Twenty One and Strike abandon their planned combination. Raphael Zagury takes over Twenty One, tasked with building cash-generating operations around its large Bitcoin treasury amid market challenges.
Jack Mallers resigned as CEO of Twenty One Capital, causing its shares to drop nearly 15%. His departure coincides with the collapse of Tether's plan to merge Twenty One, Strike, and Elektron Energy into a single public entity. Raphael Zagury has been named the new CEO, promising institutional discipline.
Strike has launched a new Bitcoin-backed loan product designed to eliminate margin calls and forced liquidations, even during significant price drops. However, it comes with a high 14% interest rate and requires timely payments to avoid liquidation.
Strike CEO Jack Mallers argued that if Wall Street “kills” Bitcoin, then the asset was never going to succeed in the first place.
Tether, majority shareholder of Twenty One Capital, proposed a three-way merger with Bitcoin payments company Strike and Bitcoin mining firm Elektron Energy. Shares of Twenty One Capital jumped 6.6% in after-hours trading to $8.35, after closing down 1.7% at $7.83. The combined company would integrate Strike's financial services platform with Elektron's mining infrastructure. Twenty One Capital holds 43,514 Bitcoin, second only to Strategy Inc. which holds 818,334 BTC.
