Twenty One Capital has abandoned plans to merge with Bitcoin financial services company Strike, ending a key part of a proposed three-way combination backed by Tether.
Summary
- Strike will remain independent after Twenty One abandoned plans to combine three major Bitcoin businesses.
- Jack Mallers stepped down as Twenty One CEO to focus on Strike’s next growth phase.
- Elektron founder Raphael Zagury now leads Twenty One while both companies continue evaluating a possible combination.
The company confirmed the change on July 21 alongside a leadership shake-up. Jack Mallers stepped down as Twenty One’s chief executive to focus on Strike, while Elektron Energy founder Raphael Zagury took over as CEO effective July 20. Strike will continue operating as an independent company.
The decision ends the original plan to combine Twenty One’s Bitcoin treasury business, Strike’s financial services platform and Elektron’s mining infrastructure. However, Twenty One said a separate transaction with Elektron remains under review and has not reached a definitive agreement.
Strike exits broader Bitcoin consolidation plan
Tether proposed the wider combination in April. The plan called for Twenty One to merge with Strike before pursuing another transaction with Elektron Energy. The proposed structure would have brought Bitcoin treasury management, payments, lending and mining under one corporate group.
As crypto.news previously reported, the proposal initially sent Twenty One shares higher in after-hours trading. At the time, Tether said the expanded business could move Twenty One beyond holding Bitcoin and into operating businesses capable of generating recurring revenue.
That strategy has now changed. Twenty One said Strike “plans to remain a standalone business and is no longer being considered for a business combination” with the company. Mallers will also return his full attention to the business he founded.
Mallers said, “Serving Bitcoiners has always been the mission, and that doesn’t change. Strike is where I carry it forward.” Twenty One did not provide a detailed reason for ending the proposed combination with Strike.
Raphael Zagury takes control of Twenty One
Zagury now takes charge as Twenty One shifts its strategy toward operating businesses, capital markets services, Bitcoin-backed financial products and lending. He previously served as a Twenty One director while leading the team behind Elektron Energy.
“My job is to build the operating company around it,” Zagury said, referring to Twenty One’s large Bitcoin balance sheet. He added that the company plans to focus more closely on cash flow and capital allocation alongside its Bitcoin holdings.
Twenty One and Elektron could still combine. The company said any potential acquisition remains at a preliminary stage and would require review under rules covering related-party transactions. It also warned that there is no guarantee the companies will reach or complete a final deal.
The narrower talks come after Tether increased its control over Twenty One earlier this year. Tether acquired SoftBank’s entire stake in the Bitcoin treasury company in May, ending one of Twenty One’s largest outside ownership positions.
Twenty One resets strategy after ownership changes
The management transition follows other changes at Twenty One since the SoftBank exit. As previously reported, the company received an NYSE compliance notice after board departures left its audit committee below required independence levels.
Twenty One is now presenting itself as a broader Bitcoin-focused operating company rather than only a corporate treasury vehicle. Its updated priorities include acquisitions, capital markets activities and a Bitcoin-native lending business designed to let holders access liquidity without selling their assets.
For now, the original three-company consolidation plan is no longer moving forward. Strike remains under Mallers as an independent business, Zagury has taken control of Twenty One, and talks involving Elektron continue without a final agreement.