Following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy, shares of Twenty One Capital (XXI) have risen over 8% in after-hours trading on Wednesday. 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 merger. According to a press release, the proposed transactions would establish XXI as 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 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 proposed that Zagury serve as President of the combined entity, leveraging his expertise in mining and capital markets alongside 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 XXI's commitment to bitcoin services, moving beyond treasury exposure to a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.