The value of Twenty One Capital (XXI) has risen 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, announced 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 the CEO of XXI, Mallers will play a key role in the proposed merger. According to a press release, the combined entity would become the world's 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. Led by Raphael Zagury, Elektron Energy currently manages approximately 5% of the bitcoin network's computing power, with production costs below $60,000 per bitcoin.
Tether has also proposed 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. 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 proposed merger will expand the company's focus beyond bitcoin accumulation, exploring other areas of bitcoin services. The combined transactions are expected to transform XXI into a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.