Headline: Twenty One Capital stock jumps after Tether Investments floats three-way merger with Strike and Elektron Energy
Shares of bitcoin-focused Twenty One Capital (XXI) climbed more than 8% in Wednesday after-hours trading after Tether Investments — the investment arm associated with stablecoin issuer Tether — proposed combining XXI with Jack Mallers’ Strike and mining and capital markets firm Elektron Energy.
What was announced
- Tether Investments said it intends to vote its XXI holdings in favor of a deal that would merge the public company with Strike and Elektron Energy. Jack Mallers is CEO of XXI and the founder of Strike.
- A company press release framed the proposed combination as creating “the premier listed Bitcoin company in the world,” bringing together bitcoin treasury, mining, financial services, lending, capital markets and strategic consolidation into an integrated platform.
- No timeline or deal terms were disclosed.
Who’s joining whom
- Strike: the global bitcoin financial-services firm founded by Jack Mallers.
- Elektron Energy: led by Raphael Zagury, Elektron reportedly controls roughly 5% of the current Bitcoin network’s hashpower, with all-in production costs under $60,000 per bitcoin. Tether proposed Zagury serve as President of the combined entity to pair his mining and capital markets experience with Mallers’ product and consumer bitcoin leadership.
Background on Twenty One Capital
- XXI went public in December via a SPAC merger with Cantor Equity Partners.
- At listing, the company positioned itself as a bitcoin treasury vehicle, holding 43,514 BTC and backed by Tether, Bitfinex and Strike founder Jack Mallers, with a stated focus on “capital-efficient bitcoin accumulation.”
Why it matters
- If completed, the deal would move XXI beyond pure treasury exposure into operating businesses and recurring-revenue lines across mining, financial services and capital markets, while still pursuing long-term bitcoin accumulation.
- The proposal signals a push to consolidate multiple bitcoin-facing businesses under a single publicly listed platform, with potential implications for institutional access to integrated bitcoin services.
Next steps
- The companies have not released a timetable or detailed terms. Any merger would require formal approvals from shareholders and likely regulatory review before closing.
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