Following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy, Twenty One Capital's shares have risen over 8% in after-hours trading on Wednesday. Tether Investment, the independent investment arm of the stablecoin issuer, plans to vote in favor of combining XXI with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy, as stated in a press release. Mallers also serves as the CEO of XXI.
The proposed merger aims to create the world's premier listed Bitcoin company by 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. 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, complementing Mallers' expertise in product and consumer bitcoin with his own experience in mining and capital markets.
After going public through a SPAC merger with Cantor Equity Partners in December last year, 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.' If the merger proceeds, the company will expand its services beyond treasury exposure to include operating businesses, recurring revenue streams, and long-term bitcoin accumulation capabilities.