Jack Mallers Questioned MicroStrategy’s Bitcoin Strategy, Now He’s Stepping Down From Twenty One
Jack Mallers has stepped down as CEO of Twenty One (XXI), the Tether-backed Bitcoin treasury agency. His exit lands months after he publicly pressed Michael Saylor over mNAV math and digital credit score yields.
The Strike founder says he give up after clashing with the board over the corporate’s course. Critics now tie his exit to the doubts he raised on stage earlier this yr.
Board Disagreements End Jack Mallers’ Twenty One Tenure
Mallers introduced the choice this week. XXI started buying and selling on December 9, 2025, so his run lasted simply seven months. The agency went public with roughly 43,500 BTC, price about $4 billion on the time. Tether, Bitfinex, and SoftBank backed it.
Tether took full management in May 2026 by buying SoftBank’s entire stake.
He shared extra element in follow-up posts. He walked away, he stated, as a result of “the board and I couldn’t agree on the way forward for the corporate.”
He additionally denied a declare by X’s Grok chatbot that he collected $140.8 million in pay. His forfeited choices, he famous, now expire nugatory.
The exit leaves the second-largest company Bitcoin treasury totally in Tether’s palms. XXI is already rethinking its model. Incoming CEO Raphael Zagury needs money circulate, not simply extra Bitcoin shopping for.
The Saylor Questions That Resurfaced After His Exit
The backstory makes the exit sting extra. At BTC Prague earlier this yr, Mallers challenged Saylor from the audience over mNAV. The metric reveals how a lot the market pays for every greenback of Bitcoin a treasury agency holds.
His concern was easy. Some companies rely securities as fairness even when they’re removed from turning into shares. That inflates the metric. In an interview on the occasion, he defined the query he put to Saylor.
“…do you agree with classifying out of the cash securities as fairness, which clearly that may inflate the fairness worth, which might make an MNAV metric extra engaging,” Mallers stated.
He used XXI’s personal convertible bond as the instance. The bond turns into inventory at $13 per share. However, the inventory traded close to $5 on the time, in order that swap was nowhere shut.
On a panel the identical day, Mallers took purpose at digital credit score. These merchandise pay traders an enormous yearly dividend that by no means stops.
Stretch, bought by Strategy, paid 11.5% when Mallers spoke. SEC filings present the speed rose to 12% in July. His query was easy. Who pays that invoice with out actual income?
“You’re not doing something productive within the financial system to provide money circulate that may afford the cash that you simply wish to give to your grandmother. So, who’s developing with the cash?” he stated through the panel.
Saylor responded at size on the time. He framed mNAV as one metric amongst a number of and defended the mannequin’s math.
Those clips at the moment are in all places once more. Many learn them as proof that Mallers doubted the sector’s core math lengthy earlier than he left it.
Rug Pull Claims Meet a Firm Denial
The market’s verdict was fast. XXI closed close to $4.60 on Tuesday, down 13.5% in a day. Early backers paid $10 per share, in order that they have misplaced greater than half their cash.
Critics on X declare losses of as much as 85% from the inventory’s peak, and a few accused Mallers of abandoning shareholders.
He pushed again laborious.
“Rug pull? Who pulled what rug? I resigned voluntarily, took no severance, forfeited my choices, and walked away as a result of it was the best factor to do. Twenty One additionally by no means bought shares by way of an ATM whereas I used to be CEO,” Mallers replied on X.
Reactions break up into three camps. Investor Mike Alfred praised the transfer as an indication of readability and alignment. BnkToTheFuture founder Simon Dixon went additional. He framed it as Mallers strolling away from wrapped securities completely.
A 3rd camp sees a warning for the digital asset treasury (DAT) sector. The mannequin appears robust whereas premiums develop, they argue. The actual take a look at begins when mNAV compresses and capital dries up.
The rankings might shift too. Metaplanet crossed 43,000 BTC in July. That practically matches XXI’s stash of roughly 43,500 BTC, placing the second spot in play.
The debate lands with Bitcoin (BTC) close to $66,600 on Tuesday, a five-week high. Mallers, in the meantime, returns his full consideration to Strike. There, he needs money circulate, not dilution, to fund Bitcoin shopping for.
Whether his warnings show proper now relies on XXI’s subsequent chapter underneath Tether. If the restructured firm delivers with out the metrics he questioned, his critique might fade with the drawdown that fueled it.
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