Strike will continue operating as a standalone company after a proposed three-way merger involving Twenty One Capital and Bitcoin miner Elektron Energy was abandoned, according to a Bloomberg report.

The report said merger discussions between Twenty One and Elektron are still ongoing. Tether, which holds majority stakes in both of those companies, had previously planned to support a broader deal that would also have included Strike.

Earlier plan would have combined three Bitcoin-focused businesses

The abandoned proposal had mapped out a merger between Twenty One Capital and Strike, the Bitcoin payments company associated with Jack Mallers. It also called for the combined business to merge with Elektron Energy, a Bitcoin mining company.

Cointelegraph reported in April that Tether said it intended to vote in favor of the proposed transaction at that stage, underscoring its role in the deal structure. Bloomberg now reports that the Strike portion of the plan has been scrapped.

Twenty One and Elektron remain in talks

While Strike is no longer part of the proposed combination, discussions between Twenty One and Elektron have not ended, according to Bloomberg. No final outcome for those talks was confirmed in the report.

The ownership structure remains a notable factor. Tether is the majority shareholder in both Twenty One and Elektron, giving it significant influence over any transaction involving the two companies.

Market reaction was limited

Investors showed little immediate reaction to the latest development. Twenty One’s shares, which trade on the New York Stock Exchange, were little changed in premarket trading on Tuesday.

That muted move suggests the report did not produce a sharp reassessment of Twenty One’s near-term position, at least before the opening bell.

Background on Twenty One’s scale and backers

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

At the time of writing, Twenty One held 43,514 Bitcoin, according to BitcoinTreasuries. That placed it as the world’s second-largest corporate Bitcoin holder behind Michael Saylor’s Strategy.

What is confirmed now

The confirmed change is that Strike will stay independent rather than join the previously outlined three-way merger. Bloomberg also reported that talks between Twenty One and Elektron are continuing, but no completed transaction involving those two companies was described.

For now, the next clear step is whether Twenty One and Elektron can reach an agreement on their own after the wider plan fell apart.

Source: cointelegraph.com