Tether Shifts Strategy as Twenty One Capital Replaces CEO

Tether has decided to change direction with its Bitcoin treasury firm, Twenty One Capital, just seven months after the company went public. Jack Mallers, the CEO, announced he is stepping down to focus on his own payments company, Strike. With his departure, Tether has officially ended plans to merge the two businesses, keeping Strike independent for the foreseeable future.

This leadership change brings a new strategy for Twenty One Capital. Raphael Zagury, a former executive at Goldman Sachs and Deutsche Bank, has taken over as the new CEO. Under his guidance, the firm is moving away from a simple buy and hold approach for Bitcoin. The new model focuses on generating consistent cash flow and building profitable business lines to support their treasury.

The shift comes as many firms that primarily hold crypto assets face pressure from recent market downturns. Twenty One Capital stock has struggled since its public debut, prompting the company to look for ways to generate income rather than relying solely on asset appreciation. The firm still holds a massive stack of over 43,000 Bitcoin, but the focus is now on disciplined capital allocation.

Investors are watching closely to see if other major corporate Bitcoin holders will follow this path toward operational revenue. If Twenty One Capital can successfully pivot to a model that balances Bitcoin holdings with active cash flow, it could set a new standard for how companies manage their digital reserves.