Bloomberg: Three-Way Merger Abandoned Between Tether-Supported Twenty One and Strike
Following the abandonment of a three-company merger proposal, Strike is set to maintain its independent operations, as Twenty One Capital and Elektron move forward with bilateral talks, according to Bloomberg's report.
Plans to combine three cryptocurrency companies backed by Tether—Twenty One Capital, Strike, and Elektron Energy—have been abandoned, according to reports.
Bloomberg sources indicate that Jack Mallers will retain his position as CEO of Strike while stepping away from his role as chief executive of Twenty One Capital.
Rather than merging with Twenty One Capital as previously planned, Strike will maintain its operations as an independent entity. Meanwhile, according to Bloomberg's reporting, Twenty One and Elektron are still engaged in merger talks. Both entities have Tether as their majority shareholder.
Shares of Twenty One (XXI) trading on the NYSE showed minimal movement during premarket hours on Tuesday.
Cointelegraph's April coverage highlighted that Tether announced its intention to support a merger proposal combining Twenty One Capital with Strike, the Bitcoin payments firm led by Mallers. The plan additionally included integrating the merged entity with Bitcoin mining operation Elektron Energy.
The establishment of Twenty One Capital occurred in 2025 with financial support from Tether, Cantor Fitzgerald and SoftBank. In May, Tether acquired SoftBank's ownership position in the firm.
According to data from BitcoinTreasuries tracking platform, Twenty One Capital possessed 43,514 Bitcoin as of this writing, positioning the company as the planet's second-biggest corporate holder of BTC, trailing only Strategy, the firm controlled by Michael Saylor.