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. According to a press release, Tether Investment intends to support the combination of XXI with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy.
As the CEO of XXI, Mallers would play a key role in the merged entity. 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.
The terms and timeline of the merger have not been disclosed. Elektron Energy, led by Raphael Zagury, 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 serve as 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. The proposed merger would expand the company's scope beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.