Following a proposal by majority shareholder Tether Investments, the shares of Twenty One Capital (XXI) have risen by over 8% in after-hours trading on Wednesday. The proposed merger involves combining XXI with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy. As the CEO of XXI, Mallers is expected to play a key role in the merger.
According to a press release, Tether Investment intends to vote in favor of the merger, which would create a premier listed Bitcoin company. The combined entity would offer an integrated platform providing bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation. 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 suggested that Zagury serve as President of the combined entity, leveraging his experience in mining and capital markets alongside Mallers' expertise in product and consumer bitcoin services. After going public 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 XXI's commitment to bitcoin services beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.