JUST IN: Tether-backed firms Twenty One Capital, Strike and Elektron Energy scrap their proposed merger, per Bloomberg. Jack Mallers steps down as Twenty One CEO, with Raphael Zagury taking over.

What happened

Tether‑backed firms Twenty One Capital, Strike and Elektron Energy cancelled their proposed merger, and Jack Mallers stepped down as Twenty One CEO while Raphael Zagury was appointed as his replacement.

Confirmed

Global impact / market context

Canceling the merger means the firms will not create a larger, potentially more efficient player in crypto payments, and the new CEO may steer Twenty One in a different direction, affecting investor confidence and future growth plans.

Confirmed

The three companies, all backed by the stable‑coin Tether, had planned to combine their crypto‑payment and energy‑tech businesses, but the merger was abandoned, leading to a leadership change at Twenty One Capital.

Confirmed

What to watch

1. Watch how new CEO Raphael Zagury adjusts Twenty One’s strategy, such as prioritizing organic growth or seeking new partnerships, which will signal the company’s future direction. Analyst inference
2. Observe whether the three firms resume any consolidation talks or pursue separate expansion, as this will affect their competitive position in the Tether‑backed crypto market. Analyst inference
3. Track any statements from Tether or regulators about the stability of Tether‑backed projects after the merger collapse, which could influence funding availability for these companies. Analyst inference

Affected assets

• USDT — Tether

Evidence

• x.com