Shares of Twenty One Capital (XXI), a firm focused on bitcoin, have risen by over 8% in after-hours trading on Wednesday. This follows a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. Tether Investment, the independent investment arm of the stablecoin issuer, intends to vote in favor of combining XXI with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy.
Mallers also serves as the CEO of XXI. According to a press release, the proposed merger would position XXI to become the world's premier listed Bitcoin company. The combined entity would integrate bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. No terms or timelines for the merger have been disclosed.
Elektron Energy, led by Raphael Zagury, manages around 5% of the current bitcoin network's computing power with production costs below $60,000 per bitcoin. Tether has proposed that Zagury serve as President of the combined entity, combining his mining and capital markets experience with Mallers' expertise in product and consumer bitcoin. XXI went public in December last year through a SPAC merger with Cantor Equity Partners, initially focusing on 'capital-efficient bitcoin accumulation' as a bitcoin treasury firm with 43,514 BTC. The proposed merger would expand the company's commitment to include other areas of bitcoin services, according to the press release.
The combined transactions would transform XXI into a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.