The value of Twenty One Capital (XXI) has risen by over 8% in after-hours trading on Wednesday, following the announcement by majority shareholder Tether Investments that it plans to merge the company with Strike and Elektron Energy. According to a recent press release, Tether Investment, the independent investment arm of the stablecoin issuer, intends to vote in favor of combining XXI with Strike, a leading 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 merger.
The proposed deal 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 is expected to position XXI for significant growth. 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. As part of the proposed merger, Zagury is expected to serve as President of the combined entity, bringing his expertise in mining and capital markets to complement Mallers' leadership 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' with a significant treasury of 43,514 BTC, backed by Tether, Bitfinex, and Strike CEO Jack Mallers. The new merger is expected to expand the company's commitment to bitcoin services beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.