Tether-Backed Twenty One, Strike Merger Scrapped; CEO Mallers Steps Down
XXI is trading near its 52-week low of $4.81 (11% above the low).
Summary
The planned merger between Twenty One Capital and Strike has been called off, a sharp reversal from the April proposal. CEO Jack Mallers is resigning from Twenty One but staying at Strike, which will now operate independently. Talks with Bitcoin miner Elektron Energy are still ongoing, but the core deal that would have combined the two Tether-backed entities is dead. This follows a tumultuous period for XXI, including a massive Q1 loss and SoftBank's exit. The collapse of the merger removes a key strategic catalyst and raises questions about Twenty One's path forward as a standalone Bitcoin treasury company.
At the time of this announcement, XXI was trading at $5.32 on NYSE in the Crypto Assets sector, with a market capitalization of approximately $3.5B. The 52-week trading range was $4.81 to $34.12. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Cointelegraph.