Bitcoin Treasury Companies Collapse Amid Market Downturn

The recent exit of Jack Mallers as CEO of Twenty One Capital (NASDAQ: XXI) has shed light on the struggles of Bitcoin treasury companies. The company, which was founded in April 2025 through a SPAC merger with Cantor Equity Partners, holds over 43,500 BTC and has seen its market value plummet from $102.2 billion to around $45.6 billion.

Mallers' departure comes as the sector's combined market value has fallen by $62 billion since its peak in October 2025. The company's stock price has also dropped significantly, with XXI falling over 18% on July 21, 2026, to a record low of $4.46 per share.

This is not an isolated incident, as other Bitcoin treasury companies have also faced significant losses. Satsuma Technology (LSE: SATS), for example, has seen its stock price fall by over 99% from its June 2025 peak, and shareholders voted to sell all remaining 668 BTC in July 2026.

The collapse of the Tether plan to merge Twenty One, Strike, and Elektron Energy into one grand bitcoin conglomerate has also contributed to the downfall of these companies. The investigation by Bloomberg revealed that Tether's chairman, Giancarlo Devasini, had a significant stake in the company and was able to influence the outcome of the negotiations.

Furthermore, the report highlighted how Tether had benefited from its connections with government officials, including Commerce Secretary Howard Lutnick, who acted as a crisis manager for Tether through 2024. The investigation also revealed that Tether had loaned one of Lutnick's children's trusts an undisclosed sum in October 2025.