Key Highlights
Strike withdraws from Tether-supported consolidation with Twenty One Capital
Jack Mallers steps down from Twenty One Capital, maintains Strike leadership
Elektron Energy negotiations with Twenty One Capital remain ongoing
Strike maintains independence as Tether adjusts corporate structure
Three-company consolidation abandoned while Twenty One Capital pursues new direction
A Tether-supported initiative to consolidate Twenty One Capital, Strike, and Elektron Energy has been terminated following the dissolution of the planned three-company merger. Jack Mallers is stepping down from his position at Twenty One Capital while maintaining his role at Strike. Under fresh leadership, Twenty One Capital plans to pursue negotiations with Elektron Energy as all parties recalibrate their business approaches.
Strike Maintains Independence as Leadership Transition Occurs
The original consolidation proposal aimed to create a unified public entity combining Bitcoin treasury management, cryptocurrency payment systems, and digital asset mining capabilities. After careful consideration, the parties opted not to finalize this arrangement. Strike will proceed as a standalone enterprise.
Jack Mallers has relinquished his chief executive position at Twenty One Capital following his tenure since the company’s inception. He will, however, maintain his leadership role at Strike and oversee its strategic development. Raphael Zagury, previously leading Elektron Energy, has taken over as chief executive at Twenty One Capital.
According to Bloomberg’s coverage, both Strike and Twenty One Capital verified the consolidation would not advance as planned. Nevertheless, Twenty One Capital and Elektron Energy are maintaining their exploratory conversations. Tether retains controlling interest positions in both enterprises.
Twenty One Capital Maintains Bitcoin-Centric Approach
Tether unveiled the consolidation initiative in April with intentions to merge three distinct cryptocurrency ventures into a single publicly traded entity. The blueprint encompassed Twenty One Capital managing the Bitcoin treasury operations, Strike providing payment infrastructure, and Elektron Energy handling mining activities. The modified arrangement now removes Strike from ongoing deliberations.
Under Raphael Zagury’s guidance, Twenty One Capital enters its next chapter following his appointment to the chief executive position. The organization intends to bolster its operational infrastructure, governance systems, and capital market engagement. Furthermore, leadership seeks to diversify beyond passive Bitcoin holdings.
The revised approach encompasses acquiring operational enterprises and optimizing capital deployment. Twenty One Capital intends to establish Bitcoin-collateralized lending products while broadening financing alternatives. The organization also targets building more robust and consistent revenue streams.
Context Behind Tether’s Strategic Reorganization
Twenty One Capital commenced operations in 2025 with financial support from Tether, Cantor Fitzgerald, and SoftBank. Subsequently, Tether purchased SoftBank’s equity position and strengthened its influence over the venture. The stablecoin provider has simultaneously broadened its portfolio across Bitcoin mining and digital infrastructure sectors.
Previous consolidation proposals garnered endorsement from Tether, which planned to approve the business combination. The initiative sought to establish a singular public corporation encompassing treasury operations, payment processing, and mining functions. Nevertheless, the participants ultimately withdrew from the comprehensive framework prior to transaction completion.
Throughout this period, Strike has pursued independent growth initiatives. The platform obtained a New York BitLicense alongside a money transmitter license from the New York Department of Financial Services this past March. Elektron Energy maintains approximately 50 exahashes per second in Bitcoin mining infrastructure while keeping operational expenses beneath prevailing Bitcoin valuations.
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