Twenty One Capital's shares have risen by over 8% in after-hours trading following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. The proposed merger, announced by Tether Investment, the investment arm of the stablecoin issuer, would bring together XXI, a bitcoin-focused firm, 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 combined entity.
According to the proposal, the merger would create a premier listed Bitcoin company, integrating 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 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, bringing his expertise in mining and capital markets to complement Mallers' experience in product and consumer bitcoin leadership.
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 commitment to bitcoin services, moving beyond treasury exposure to a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.