Tether-backed crypto merger scrapped; Strike to operate independently
Quick Look
- A proposed merger involving Tether-backed Twenty One Capital, Strike, and Elektron Energy has been scrapped.
- Strike will now operate as a standalone company, while Jack Mallers steps down as Twenty One Capital CEO, succeeded by Raphael Zagury.
- Discussions between Twenty One and Elektron Energy are ongoing.
AI-generated summary
Why It Matters
Tether had previously announced plans to vote in favor of a proposed merger between Twenty One Capital, Jack Mallers’ Bitcoin payments company Strike, and Bitcoin miner Elektron Energy.
A proposed merger involving Tether-backed crypto companies Twenty One Capital, Strike and Elektron Energy has reportedly been scrapped.
Jack Mallers will step down as CEO of Twenty One Capital while remaining CEO of Strike, according to Bloomberg. Elektron Energy CEO Raphael Zagury has been appointed to succeed Mallers.
Strike will continue operating as a standalone company instead of combining with Twenty One Capital. Discussions between Twenty One and Elektron are continuing, Bloomberg reported. Tether holds majority stakes in both companies.
Twenty One’s (XXI) NYSE-traded shares were little changed in Tuesday’s premarket activity.
As Cointelegraph reported in April, Tether said it planned to vote in favor of a proposed merger between Twenty One Capital and Mallers’ Bitcoin payments company, Strike. The proposal also envisioned merging the combined company with Bitcoin miner Elektron Energy.
Twenty One Capital launched in 2025 with backing from Tether, Cantor Fitzgerald and SoftBank. Tether bought SoftBank’s stake in the company in May.
Twenty One held 43,514 Bitcoin at the time of writing, making it the world’s second-largest corporate BTC holder behind Michael Saylor’s Strategy, according to tracking website BitcoinTreasuries.
What to Watch
AI outlook — possibilities, not facts
Discussions between Twenty One Capital and Elektron Energy will continue regarding a potential future arrangement.
Likely · Within weeks
Open Questions
- What led to the decision to scrap the merger?
- What is the expected outcome of the continuing discussions between Twenty One and Elektron?
