A proposed merger involving Tether-backed crypto companies Twenty One Capital, Strike and Elektron Energy has reportedly been scrapped.

Jack Mallers will step down as CEO of Twenty One Capital while remaining CEO of Strike, according to Bloomberg.

Strike will continue operating as a standalone company instead of combining with Twenty One Capital. Discussions between Twenty One and Elektron are continuing, Bloomberg reported. Tether holds majority stakes in both companies.

Twenty One’s (XXI) NYSE-traded shares were little changed in Tuesday’s premarket activity.

As Cointelegraph reported in April, Tether said it planned to vote in favor of a proposed merger between Twenty One Capital and Mallers’ Bitcoin payments company, Strike. The proposal also envisioned merging the combined company with Bitcoin miner Elektron Energy.

Twenty One Capital launched in 2025 with backing from Tether, Cantor Fitzgerald and SoftBank. Tether bought SoftBank’s stake in the company in May.

Twenty One held 43,514 Bitcoin at the time of writing, making it the world’s second-largest corporate BTC holder behind Michael Saylor’s Strategy, according to tracking website BitcoinTreasuries.

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