A proposed three-way merger that would have combined Tether-backed Twenty One, payments firm Strike, and digital asset platform Elektron has been called off. Strike, which had been in talks to join the deal, will remain a standalone company. Twenty One Capital and Elektron are still in discussions, but the broader consolidation plan is dead.
Why the deal collapsed
The merger was announced earlier this year as a way to integrate stablecoin infrastructure, payment processing, and tokenization services under one roof. Investors had expected the deal to close before the end of the quarter. But negotiations hit a snag in recent weeks, and sources familiar with the matter say the parties couldn't agree on valuation and governance terms. Tether, which backs Twenty One, didn't comment on the breakdown.
Strike goes it alone
Strike, a Bitcoin-friendly payments app founded by Jack Mallers, had been positioned as a key piece of the combined entity. The company processes billions in transactions annually and was seen as the consumer-facing layer of the deal. Now Strike will continue operating independently, with no immediate plans to seek another merger partner, according to a person close to the firm.
Twenty One and Elektron keep talking
Twenty One Capital and Elektron are still in active discussions, though the scope of those talks is now narrower. Twenty One is a special purpose acquisition company that raised $200 million in 2023 to acquire a crypto business. Elektron operates a tokenized securities platform. The two are exploring a joint venture rather than a full merger, but nothing has been finalized.
What happens next
Strike will focus on its existing growth plans, including expanding its Lightning Network payments and launching in new markets. Twenty One Capital faces a deadline to complete a business combination or return funds to investors. Elektron is also weighing other partnership options. The failure of the three-way deal leaves each company charting its own path, with no clear timeline for a new agreement.
