The value of Twenty One Capital (XXI) shares has risen by over 8% in after-hours trading on Wednesday, following the announcement by Tether Investments, its majority shareholder, of a proposed merger with Strike and Elektron Energy. According to a press release, Tether Investments intends to vote in favor of combining XXI with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy.
As the CEO of XXI, Mallers is expected to play a key role in the merged entity. The proposed merger aims to create a premier listed Bitcoin company that integrates bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. Although the terms and timeline of the merger have not been disclosed, the combined entity is expected to be led by Jack Mallers as CEO and Raphael Zagury, the founder of Elektron Energy, as President. With approximately 5% of the current bitcoin network's computing power and all-in production costs below $60,000 per bitcoin, Elektron Energy brings significant mining and capital markets expertise to the table.
The proposed merger marks a significant expansion of XXI's initial focus on 'capital-efficient bitcoin accumulation' and is expected to position the company as a major player in the bitcoin services sector.