Twenty One Capital's shares have risen by over 8% in after-hours trading on Wednesday, driven by a proposed merger with Strike and Elektron Energy, put forth by majority shareholder Tether Investments. This combination, as announced by Tether Investment, the stablecoin issuer's independent investment arm, would bring together XXI, a bitcoin-focused firm, with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy. Mallers also serves as CEO of XXI. According to the press release, the merger would position 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 proposed 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 take on the role of President of the combined entity, leveraging his experience in mining and capital markets alongside Mallers' expertise in product and consumer bitcoin leadership.
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 company initially focused on 'capital-efficient bitcoin accumulation.' The proposed merger would expand this commitment, moving the company beyond treasury exposure into a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.