Strike has officially exited a planned merger supported by Tether that aimed to combine Strike, Twenty One Capital, and Elektron Energy under a single publicly listed entity. The decision brings significant changes for all involved parties, leading to a restructuring of leadership and corporate strategies as the groups adapt to new circumstances.
Leadership changes and merger status
Jack Mallers, founder and CEO of Strike, has resigned from his role as chief executive at Twenty One Capital. Mallers continues to lead Strike, ensuring the company remains focused on its original business operations. Raphael Zagury, previously the head of Elektron Energy, has stepped into the CEO position at Twenty One Capital, taking on responsibility for the firm’s strategic direction.
Strike’s choice to remain independent has resulted in the abandonment of the initial merger vision, which sought to bring together Bitcoin treasury management, payments infrastructure, and mining operations under one consolidated structure. Both Strike and Twenty One Capital have confirmed that the three-way merger has been terminated; however, Twenty One Capital and Elektron Energy are continuing discussions about a revised partnership.
Tether, which retains controlling ownership stakes in both Twenty One Capital and Elektron Energy, is now reassessing its approach following Strike’s departure from the merger framework.
Raphael Zagury’s appointment at Twenty One Capital marks a shift towards reinforcing operational infrastructure and governance, while leadership aims to expand beyond passive Bitcoin holding strategies.
Strategy update for Twenty One Capital and Elektron Energy
Under its restructured leadership, Twenty One Capital will focus on building a robust capital markets presence, strengthening governance practices, and pursuing strategic investments and acquisitions. The company is preparing to launch Bitcoin-collateralized lending platforms and explore diversified finance mechanisms as part of broadening its revenue base.
Elektron Energy, meanwhile, continues to operate approximately 50 exahashes per second of Bitcoin mining power while maintaining production costs below prevailing market prices. The company remains in active negotiations with Twenty One Capital regarding possible future collaborations.
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Tether’s investment strategy and ongoing changes
Twenty One Capital entered the cryptocurrency sector in 2025, backed financially by Tether, Cantor Fitzgerald, and SoftBank. Tether later purchased SoftBank’s stake, consolidating increased control over the enterprise while maintaining a central role in shaping strategy.
Initially, the merger plan positioned Twenty One Capital as a Bitcoin treasury, Strike as the payments platform, and Elektron Energy as the mining arm. With Strike’s withdrawal, Tether has had to adjust its corporate approach, focusing on strengthening the remaining entities and exploring opportunities for further investment in mining and digital infrastructure.
During the certificate acquisition process earlier this year, Strike secured a New York BitLicense and a money transmitter license from the New York Department of Financial Services, allowing the company to continue operating as an independent payments firm and maintain momentum in the fast-changing crypto environment.
Twenty One Capital’s revised strategy emphasizes expanding capital deployment into operational businesses and launching Bitcoin-focused financial products while aiming for more reliable, consistent revenue streams.
