Shares of Twenty One Capital (XXI) have risen by over 8% in after-hours trading on Wednesday, following the announcement by majority shareholder Tether Investments of a proposed merger with Strike and Elektron Energy. Tether Investment, the independent investment arm of the stablecoin issuer, has expressed its intention to vote in favor of the merger, which would bring together XXI, a bitcoin-focused firm, with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy.
As the CEO of XXI, Mallers would play a key role in the combined entity. The proposed merger is expected to create a premier listed Bitcoin company, offering an integrated platform that combines bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation. Although no terms or timelines have been disclosed for the merger, it is anticipated that the combined entity would be well-positioned for long-term growth.
Led by Raphael Zagury, Elektron Energy 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, bringing his expertise in mining and capital markets to complement Mallers' experience in product and consumer bitcoin services. 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 the company's commitment to bitcoin services, moving beyond treasury exposure to create a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.