Tether abandons merger plan for Twenty One Capital, Strike and Elektron Energy
Tether has abandoned its plans to combine its affiliated crypto companies Twenty One Capital, Strike, and Elektron Energy. As part of the restructuring, Jack Mallers stepped down as CEO of Twenty One Capital and was replaced by Raphael Zagury, the head of Elektron Energy.
According to Bloomberg, Strike will continue operating as an independent company. Discussions regarding future cooperation between Twenty One Capital and Elektron Energy are ongoing.
Tether unveiled the proposed three-company structure in April 2026. Under the plan, Twenty One Capital would oversee Bitcoin accumulation strategies, Strike would provide trading services, and Elektron Energy would manage mining operations.
Jack Mallers to focus on Strike
According to Zagury, the transaction structure changed after Mallers decided to fully focus on the development of Strike.
The new CEO of Twenty One Capital said the company intends to place greater emphasis on capital management and building sustainable cash flows rather than focusing exclusively on accumulating Bitcoin.
Tether CEO Paolo Ardoino thanked Mallers for his role in launching Twenty One Capital and said Zagury has the experience necessary to lead the company's next stage of growth.
Shares are down 40% from peak
Twenty One Capital was created in December 2025 through a SPAC transaction backed by Tether, SoftBank Group, and Cantor Fitzgerald.
At launch, the company held more than 40,000 BTC, making it the world's third-largest corporate Bitcoin holder.
Since early May, Twenty One Capital's share price has fallen by approximately 40%, trading at around $5.32 at the time of publication.
Twenty One Capital share price. Source: TradingView.
In recent months, companies pursuing Bitcoin treasury strategies have faced increasingly challenging market conditions.
For example, South Korean media company K Wave Media abandoned plans to establish a Bitcoin treasury reserve and shifted its focus to developing AI infrastructure. The company simultaneously filed with the SEC to raise up to $250 million through a securities offering to fund its new business direction.
Earlier, Strategy sold 3,588 BTC worth approximately $216 million, marking one of the few reductions in its Bitcoin holdings in recent years. The proceeds were used to pay preferred stock dividends and replenish the company's U.S. dollar reserves.
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