What was Tether trying to do?

Tether planned to combine three Bitcoin businesses into one company before deciding not to proceed with the merger.

Jack Mallers is the founder of Strike, a payments company built around Bitcoin (CRYPTO:BTC) and the Lightning Network.

What happens to XXI Capital now?

XXI Capital will continue without the planned merger, and the businesses involved will remain separate.

The announcement relates to the cancelled merger and leadership change. Tether did not announce changes to its USDT stablecoin business.

Image for illustrative purposes only. Not a real photo.

Jack Mallers stepped down after Tether cancelled its plan to merge three Bitcoin-focused companies into XXI Capital.

Written by Liezl GambePublished Jul 22, 2026, 3:00 AM

Jack Mallers has stepped down as CEO of XXI Capital after Tether ended its plan to merge three Bitcoin (CRYPTO:BTC) firms.
The proposed deal would have combined Bitcoin-focused businesses into one company.
Mallers will remain involved with the business in a different role, according to the company.

Jack Mallers has stepped down as chief executive of XXI Capital after Tether cancelled its plan to merge three Bitcoin-focused companies.

The decision follows the collapse of a deal that aimed to combine the businesses into a single company.

"There are moments when leadership means stepping aside," Mallers said.

Tether said the merger will not go ahead, ending plans to create a larger Bitcoin-focused business through the transaction.

The companies will now continue operating separately, and no share price reaction was available because the deal involved privately held businesses.

Mallers is best known as the founder of Strike, a Bitcoin (CRYPTO:BTC) payments company built on the Lightning Network.

Tether remains one of the biggest companies in the crypto industry and continues to expand its investments beyond its USDT stablecoin business.

At the time of reporting, Bitcoin price was $66,334.58.