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Tether Reworks Twenty One's Bitcoin Strategy After Mallers Exit

After Jack Mallers stepped down, Twenty One Capital is shifting under Tether toward cash flow and business building while still holding 43,514 BTC.

By Mike Hesp
• 2 min read
Tether Reworks Twenty One's Bitcoin Strategy After Mallers Exit

Key Takeaways

  • Tether is steering Twenty One Capital in a new direction after Jack Mallers' exit, with less focus on buying more Bitcoin.
  • Under Raphael Zagury, the focus is shifting to cash flow, business building, governance, and capital allocation.
  • Twenty One still holds 43,514 BTC and also wants to make loans backed by Bitcoin to provide liquidity without selling.

Tether is changing course at Twenty One Capital (XXI) after CEO Jack Mallers stepped down, only seven months after the Bitcoin treasury company went public. With Raphael Zagury now leading the effort, the company is putting less weight on stacking more Bitcoin and more emphasis on cash flow, business development, and capital allocation.

From Merger Plan to Course Correction

The new direction is a notable shift from the broader plan Tether laid out in late April. Back then, Twenty One was expected to merge with Strike and Elektron Energy into a single Bitcoin platform that would combine treasury operations, mining, financial services, and capital markets. That is no longer the path: Strike is still operating on its own, and discussions around Elektron are still at an early stage. Because Tether holds a majority stake on both sides, any deal would also face additional scrutiny as a related-party transaction.

That pivot also reflects the wider pressure facing digital asset treasury companies, which mainly buy and hold crypto. Bloomberg previously reported that Bitcoin's slump has triggered losses and layoffs across that segment. For Twenty One, the strain is already visible. The stock closed Monday at $5.32 (€4.66), about 43% below its listing price, and the company now carries a market value of roughly $1.85 billion (€1.6 billion) on the NYSE.

Zagury Chooses Cash Flow

Zagury brings a traditional finance background to the role, with past stops at Goldman Sachs, Deutsche Bank, and Merrill Lynch. He later led finance at OpenCo, once one of Brazil's largest fintech lenders. His view is that Twenty One should be more than a Bitcoin holding company and should also operate as a business that can build profitable lines of revenue.

In a statement, he said the company needs the discipline, governance, and execution standards of an institutional player, and that attention should go beyond the Bitcoin reserve to include the cash flow the business can generate on its own. Twenty One also plans to make loans backed by Bitcoin, giving holders a way to access liquidity without selling their coins. That approach fits a broader market trend, with some firms now using Bitcoin as collateral or as a source of funding. In Japan, Metaplanet is also exploring Bitcoin-backed credit products.

Why This Matters

For European crypto readers, the main point is that one of the biggest publicly traded Bitcoin holders is widening its playbook. Twenty One still holds 43,514 BTC and, according to BitcoinTreasuries.net, ranks second among public companies behind Strategy. If a company like this starts leaning less on pure accumulation and more on operating revenue, it could be a sign that the Bitcoin treasury company model is becoming more mature.

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