A planned merger involving Tether-backed Twenty One Capital, Bitcoin payments platform Strike, and mining firm Elektron Energy has been scrapped, marking a significant shift in Tether’s strategy to create an integrated Bitcoin-focused business.
According to Bloomberg, the proposed three-way deal has been abandoned, with Jack Mallers stepping down as chief executive of Twenty One Capital to focus exclusively on leading Strike. In his place, Raphael Zagury, CEO of Elektron Energy, has assumed the top role at Twenty One Capital.
While the broader merger has been shelved, discussions regarding a potential combination between Twenty One Capital and Elektron Energy are reportedly continuing.
Tether first unveiled the plan in April, aiming to unite Twenty One’s Bitcoin treasury, Strike’s trading and payments platform, and Elektron’s mining operations under a single corporate structure. However, the companies have not disclosed the reasons behind the collapse of the larger transaction.
Under its new leadership, Twenty One Capital plans to shift its focus beyond simply expanding its Bitcoin holdings. Zagury said the company intends to strengthen its governance, improve access to capital markets, and prioritize sustainable cash flow alongside disciplined capital allocation.
Meanwhile, Strike will continue operating independently as it pursues its own growth strategy.
Twenty One Capital was launched in December through a special purpose acquisition company (SPAC) backed by Tether, Japan’s SoftBank Group, and investment bank Cantor Fitzgerald. At its debut, the firm held more than 40,000 Bitcoin, making it the third-largest corporate holder of the cryptocurrency worldwide.
Despite its strong start, the company’s stock has declined around 40% from its early May high, with shares recently trading at approximately $5.30, reflecting broader investor caution surrounding the company’s evolving strategy.
