Twenty One Capital has terminated its proposed merger with Strike, the Bitcoin financial services company founded by Jack Mallers.

Mallers has stepped down as chief executive of Twenty One to focus on Strike, which will continue operating independently. Raphael Zagury, founder of Elektron Energy, has assumed the role of chief executive at Twenty One effective July 20.

The original plan had envisioned combining Twenty One’s Bitcoin treasury operations, Strike’s payments and lending platform, and Elektron’s mining business. Discussions between Twenty One and Elektron remain ongoing but have not reached a definitive agreement.

Tether, which holds a majority stake in Twenty One, had backed the broader consolidation announced in April. The company is now shifting toward operating businesses, capital markets activities and Bitcoin-backed financial products.

Zagury stated that his focus will be building sustainable operations around Twenty One’s Bitcoin holdings, with emphasis on cash flow and capital allocation. Mallers described the decision as aligning with his commitment to Bitcoin-focused development through Strike.

The changes follow Tether’s acquisition of SoftBank’s stake in Twenty One earlier this year.