The value of Twenty One Capital (XXI) has increased by over 8% in after-hours trading on Wednesday, following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. Tether Investment, the independent investment arm of the stablecoin issuer, has announced its intention to support the combination of XXI with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy, according to a recent press release. Mallers also serves as the CEO of XXI. The proposed merger aims to create a premier listed Bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform.
Although the terms and timelines of the merger have not been disclosed, the combined entity would be well-positioned for growth. Led by Raphael Zagury, Elektron Energy currently manages around 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 alongside Mallers' expertise in product and consumer bitcoin services. Following its public listing in December through a SPAC merger with Cantor Equity Partners, XXI entered the market as a bitcoin treasury firm with 43,514 BTC, backed by Tether, Bitfinex, and Strike CEO Jack Mallers.
The company initially focused on 'capital-efficient bitcoin accumulation.' If the proposed merger is successful, XXI will expand its services beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.