TLDR
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Tether-backed merger collapses as Strike exits Twenty One Capital deal
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Jack Mallers leaves Twenty One Capital while Strike stays independent
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Twenty One Capital continues Elektron talks after merger plan ends
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Strike splits from Twenty One Capital as Tether reshapes strategy
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Tether drops three-way merger while Twenty One Capital changes course
Tether-backed plans to combine Twenty One Capital, Strike and Elektron Energy have ended after the companies abandoned the proposed three-way merger. Jack Mallers will leave Twenty One Capital as chief executive while continuing to lead Strike. Twenty One Capital will continue discussions with Elektron Energy under new leadership as the companies reshape their strategies.
Strike Exits Merger While Twenty One Capital Changes Leadership
The proposed merger would have united Bitcoin treasury operations, crypto payments, and mining under one public company. The companies decided against completing that structure. Strike will continue operating as an independent business.
Jack Mallers stepped down as chief executive of Twenty One Capital after leading the company since its launch. However, he will remain chief executive of Strike and continue directing its growth. Elektron Energy chief Raphael Zagury has assumed leadership of Twenty One Capital.
Bloomberg reported that Strike and Twenty One Capital confirmed the merger would not proceed. However, discussions between Twenty One Capital and Elektron Energy remain active. Tether continues holding majority ownership stakes in both companies.
Twenty One Capital Keeps Focus on Bitcoin Strategy
Tether introduced the merger proposal in April to combine three separate crypto businesses into one listed company. The plan included Twenty One Capital as the Bitcoin treasury business, Strike as the payments platform, and Elektron Energy as the mining operation. The revised structure now excludes Strike from future discussions.
Raphael Zagury will oversee the next stage of Twenty One Capital after taking the chief executive role. The company plans to strengthen its operating structure, governance framework, and capital markets activities. Additionally, management intends to expand beyond simply holding Bitcoin reserves.
The updated strategy includes acquiring operating businesses and improving capital allocation. Twenty One Capital plans to develop Bitcoin-backed lending services while expanding financing options. The company also aims to build stronger and more sustainable cash flow.
Background as Tether Reshapes Its Crypto Businesses
Twenty One Capital launched in 2025 with backing from Tether, Cantor Fitzgerald and SoftBank. Tether acquired SoftBank’s ownership stake and increased its control over the company. The stablecoin issuer also expanded its investments across Bitcoin mining and digital asset infrastructure.
Earlier merger plans received support from Tether, which intended to vote in favor of combining the businesses. The proposal sought to create a single public company covering treasury management, payments, and mining operations. However, the companies later abandoned that broader structure before completing the transaction.
Strike has continued expanding independently during the same period. The company secured a New York BitLicense and a money transmitter license from the New York Department of Financial Services in March. Elektron Energy continues operating approximately 50 exahashes per second of Bitcoin mining capacity while maintaining production costs below recent Bitcoin market prices.
