The planned merger between Twenty One Capital, Strike, and Elektron Energy has been called off, according to Bloomberg. The deal was supported by Tether and aimed to combine the businesses of the three crypto firms under a single structure. Strike will continue operating as a standalone company.
Jack Mallers, who served as CEO of both Twenty One Capital and Strike, has stepped down from his role at Twenty One Capital. Mallers will remain CEO of Strike, while Raphael Zagury has taken over as CEO of Twenty One Capital.
The three firms confirmed that the original consolidation plan is no longer moving ahead. Discussions between Twenty One Capital and Elektron Energy are continuing, while Strike is no longer included in merger-related discussions.
New CEO Takes Charge at Twenty One Capital
Twenty One Capital appointed Raphael Zagury as CEO effective July 20, 2026, according to the press release. Zagury founded and led Elektron Energy, a Bitcoin mining company. He will now manage Twenty One Capital’s business operations after taking charge of the firm.
Mallers said he was leaving Twenty One Capital to focus on Strike during “its next phase of growth.” His departure ends a period in which he managed leadership duties at both companies since April 2025.
In an April 2025 letter to Strike investors, Mallers wrote, “This is not a shift in my commitment; it’s an extension of it.” He had previously said that holding both roles would not affect his work at Strike.
Tether Supports Twenty One Capital Merger Structure
Tether announced in April its plan to vote in favor of mergers involving Twenty One Capital, Strike, and Elektron Energy. The proposed structure included Strike’s financial services platform and Elektron’s Bitcoin mining operations.
Tether holds majority stakes in both Twenty One Capital and Elektron Energy. Twenty One Capital launched in 2025 with support from Tether, Cantor Fitzgerald, and SoftBank. Tether later bought SoftBank’s stake in May.
Twenty One Capital held 43,514 Bitcoin, making it the second-largest corporate Bitcoin holder behind Michael Saylor’s Strategy, according to BitcoinTreasuries. The company’s NYSE-traded shares showed little change in Tuesday’s premarket activity.
Mallers Issues Farewell Statement After Leadership Change
Mallers later shared a farewell message about his time at Twenty One Capital. He said, “I’m grateful to everyone at XXI and everyone who believed in what we built.” A representative for Mallers did not respond to Bloomberg’s request for further comment.
Raphael Zagury explained the leadership change by saying,
“The structure evolved as Jack decided to focus full-time on Strike and I stepped in to lead Twenty One. Strike is continuing to grow independently, and Twenty One is focused on building the operating, governance, and capital markets foundation for its next phase.”
