Following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy, the shares of Twenty One Capital (XXI) have risen by over 8% in after-hours trading on Wednesday. Tether Investment, the independent investment arm of the stablecoin issuer, has expressed its intention to vote in favor of combining XXI with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy, as stated in a press release. Mallers also serves as the CEO of XXI. 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.
The terms and timelines of the merger have not been disclosed. Elektron Energy, led by Raphael Zagury, currently manages approximately 5% of the bitcoin network's computing power, with production costs below $60,000 per bitcoin. Tether has also suggested that Zagury take on the role of President of the combined entity, leveraging his experience in mining and capital markets to complement Mallers' expertise in product and consumer bitcoin services.
Since going public in December through a SPAC merger with Cantor Equity Partners, XXI has focused on 'capital-efficient bitcoin accumulation' as a bitcoin treasury firm with 43,514 BTC, backed by Tether, Bitfinex, and Strike CEO Jack Mallers. If the merger is successful, the company plans to expand its services beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.