Shares of Twenty One Capital (XXI) have risen over 8% in after-hours trading on Wednesday, following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. The proposed merger, announced by Tether Investment, the independent investment arm of the stablecoin issuer, aims to integrate XXI with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy. As the CEO of XXI, Mallers would lead the combined entity.
According to the proposal, the merger would create a premier listed Bitcoin company, offering a range of services including bitcoin treasury, mining, financial services, lending, and capital markets. The combined entity would be led by Mallers as CEO, with Raphael Zagury, the head of Elektron Energy, serving as President. Zagury's company currently manages around 5% of the bitcoin network's computing power, with production costs below $60,000 per bitcoin.
The proposed merger would expand XXI's focus beyond bitcoin accumulation, creating a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities. No terms or timelines for the merger have been disclosed.
XXI went public in December through a SPAC merger with Cantor Equity Partners, with a focus on 'capital-efficient bitcoin accumulation.' The company is backed by Tether, Bitfinex, and Strike CEO Jack Mallers.