Jack Mallers Steps Down as Twenty One Capital CEO, Tether-Backed Bitcoin Merger Collapses
The tl;dr
Jack Mallers, founder of Strike, has stepped down as CEO of Twenty One Capital over disagreements about the company's bitcoin business strategy. A proposed three-way merger between Twenty One Capital, Strike, and Elektron Energy, backed by Tether, has been scrapped. Strike will continue operating independently while Twenty One Capital and Elektron explore other options.
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30-day · delayedKey points
- Jack Mallers, founder of bitcoin payments firm Strike, has resigned as CEO of Twenty One Capital, a bitcoin treasury company he led. Raphael Zagury has been named his replacement.
- The collapse centers on strategic disagreements about how Twenty One Capital should conduct its bitcoin business operations, though specific details have not been disclosed.
- A three-way merger between Twenty One Capital, Strike, and Elektron Energy, which was backed and reportedly facilitated by Tether, has been abandoned entirely.
- Strike will operate as a standalone company going forward, while Twenty One Capital and Elektron Energy continue exploring a potential merger without Strike's involvement.
- The failed merger represents a setback for Tether's efforts to consolidate bitcoin infrastructure and services into a unified entity.
Jack Mallers has stepped down as CEO of Twenty One Capital, a bitcoin treasury and infrastructure company, following strategic disagreements about the firm’s direction. Raphael Zagury will take over as chief executive. Mallers remains the founder and controlling figure behind Strike, a separate bitcoin payments platform, but will no longer lead Twenty One Capital’s operations.
The leadership change comes alongside the collapse of an ambitious three-way merger that Tether had backed. The deal would have combined Twenty One Capital, Strike, and Elektron Energy into a single consolidated entity focused on bitcoin infrastructure and capital markets. Sources indicate the merger fell apart over differences regarding Twenty One Capital’s core business strategy, though neither Mallers nor the companies have disclosed specifics about the disagreement.
Going forward, Strike will remain independent, continuing to operate as a standalone bitcoin payments and settlement business. Meanwhile, Twenty One Capital and Elektron Energy have signaled they may continue exploring a potential combination without Strike. The breakdown of the Tether-backed arrangement highlights how alignment on strategy remains difficult even when powerful backers push for consolidation.“
The collapse of this Tether-backed merger shows how disagreements over strategy can derail major consolidation plays in crypto infrastructure, and raises questions about how Tether exercises influence over the businesses it funds.
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