Mallers Departs Twenty One: Tether Gains Full Control as Bitcoin Treasury Model Faces Scrutiny
Jack Mallers' exit from Twenty One hands full control of the Bitcoin treasury firm to Tether. His prior critiques of the Digital Asset Treasury sector's financial models now resurface, casting a shadow on its sustainability. Twenty One stock slid sharply, signaling market unease.
Jack Mallers has stepped down as CEO of Twenty One (XXI), the Tether-backed Bitcoin treasury firm. This move solidifies Tether's full control over what was the second-largest corporate Bitcoin treasury. Mallers' departure follows months after he publicly challenged the Digital Asset Treasury (DAT) sector's core metrics and yield strategies.
The exit stems from fundamental disagreements with the board over XXI's future direction. Mallers vehemently denied "rug pull" claims, confirming he forfeited options and took no severance. XXI shares saw a sharp 13.5% slide on the news, leaving early investors significantly underwater.
Mallers' earlier questions to Michael Saylor regarding mNAV (market value to net asset value) and digital credit yields now gain new weight. He highlighted concerns about inflated equity metrics and the sustainability of high dividend payouts without real underlying cash flow.
The market reaction is split. Some interpret Mallers' move as a clear signal of underlying issues, while others see it as a warning for the broader DAT sector. The true test for these models, many argue, comes when premiums compress and capital tightens.
Mallers now shifts his full focus back to Strike, prioritizing cash flow over dilution for Bitcoin acquisition. Meanwhile, Metaplanet's Bitcoin holdings now closely rival XXI's, setting up a potential ranking shift in the corporate treasury landscape. Bitcoin currently trades near a five-week high at $66,600.