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.
The announcement rattled investors.
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.
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