A proposed three-way merger involving Tether-backed Bitcoin companies Twenty One Capital, Strike, and Elektron Energy has reportedly been scrapped, according to a report from Bloomberg.
Following the dissolution of the deal, Jack Mallers will step down as Chief Executive Officer of Twenty One Capital while continuing to lead Bitcoin payments firm Strike as an independent, standalone enterprise. Meanwhile, corporate discussions regarding a potential combination between Twenty One Capital and Bitcoin miner Elektron Energy remain active. Tether holds controlling majority stakes across both entities.
Shares of Twenty One Capital (NYSE: XXI) remained largely stable during premarket trading following the news. First unveiled in April, the proposed consolidation aimed to merge Twenty One Capital with Strike and Elektron Energy to create a vertically integrated Bitcoin conglomerate. Twenty One Capital originally launched in 2025 with backing from Tether, Cantor Fitzgerald, and SoftBank, though Tether subsequently acquired SoftBank’s equity position in May.
Despite the strategic shift, Twenty One Capital retains its position as a major institutional Bitcoin treasury holder. The firm currently holds 43,514 BTC, maintaining its status as the world’s second-largest corporate Bitcoin holder behind Strategy.
