Headline: Twenty One abandons plan to merge with Strike; Jack Mallers exits as Twenty One CEO, Raphael Zagury named CEO
Twenty One Capital has dropped plans to merge with Bitcoin payments firm Strike, ending a key piece of a proposed three-way consolidation that had Tether’s backing. The company confirmed the strategic shift on July 21 and announced a leadership change: Jack Mallers is stepping down as Twenty One’s CEO to refocus on running Strike, and Elektron Energy founder Raphael Zagury became Twenty One’s CEO effective July 20. Strike will remain an independent business.
What changed
- The original proposal — pitched by Tether in April — envisioned combining Twenty One’s Bitcoin treasury business, Strike’s payments and financial services platform, and Elektron Energy’s mining infrastructure into one corporate group. That structure aimed to bring treasury management, payments, lending and mining under a single umbrella.
- Twenty One says Strike “plans to remain a standalone business and is no longer being considered for a business combination.” Mallers confirmed his departure from Twenty One in a public message, saying the decision was difficult but aligned with his long-term focus: “My life's work remains Bitcoin. My Bitcoin company is @Strike. The work continues.”
- Twenty One did not lay out detailed reasons for ending the proposed combination with Strike.
Leadership and strategic pivot
- Raphael Zagury — who previously served on Twenty One’s board while founding Elektron Energy — takes the helm and says the company will pivot toward building an “operating company” around its large Bitcoin balance sheet. Zagury indicated priorities will include operating businesses, capital markets services, Bitcoin-backed financial products and lending, with more emphasis on cash flow and capital allocation.
- Mallers will return his full attention to Strike and its mission to serve Bitcoin users. He told followers: “Serving Bitcoiners has always been the mission, and that doesn’t change. Strike is where I carry it forward.”
Elektron deal still possible, but uncertain
- Twenty One said a separate transaction with Elektron Energy remains under review but has not reached a definitive agreement. Any acquisition would be subject to related‑party transaction rules and there is no guarantee a final deal will be reached.
Context and market reaction
- The wider combination initially lifted Twenty One shares in after-hours trading when it was first announced. Tether framed the plan as a way to move Twenty One beyond a pure treasury vehicle into businesses that could generate recurring revenue.
- Earlier this year Tether increased its influence over Twenty One by acquiring SoftBank’s entire stake in the company (May). Twenty One has also undergone board changes that prompted an NYSE compliance notice after departures left its audit committee short of required independence levels.
Bottom line
The three‑company consolidation that would have united Bitcoin treasury, payments and mining under one corporate group is no longer moving forward. Strike remains independent under Mallers’ leadership, Raphael Zagury has taken over Twenty One with a strategy shift toward operating businesses and Bitcoin-backed financial services, and talks with Elektron remain preliminary.
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