Headline: Shares Surge After Tether Unveils Proposal to Merge Jack Mallers’ Twenty One Capital with Strike and Elektron Energy
Twenty One Capital (XXI) shares jumped more than 8% in after-hours trading Wednesday after majority holder Tether Investments disclosed plans for a three-way combination that would unite XXI with Strike and mining/capital markets firm Elektron Energy.
Tether Investments — the independent investment arm of the stablecoin issuer — said it will vote its shares in favor of the deal, according to a company press release. If approved, the transaction would fold Jack Mallers’ Strike (Mallers is the founder of Strike and also CEO of XXI) together with Elektron Energy under the XXI public vehicle. Tether’s release described the move as positioning XXI “to become the premier listed Bitcoin company in the world,” combining bitcoin treasury, mining, financial services, lending and capital markets into a single integrated platform.
Key facts
- Market reaction: XXI shares rose 8%+ in after-hours trading Wednesday.
- Parties: Tether Investments (majority shareholder of XXI), Strike (bitcoin financial services firm founded by Jack Mallers), and Elektron Energy (mining and capital markets operator).
- Leadership: Tether proposed Raphael Zagury, who runs Elektron Energy, as President of the combined company to pair his mining and capital markets expertise with Mallers’ consumer and product leadership.
- Mining footprint: Elektron Energy manages roughly 5% of current Bitcoin network computing power and reports all-in production costs below $60,000 per bitcoin.
- No timeline or financial terms were disclosed.
Background and strategy
XXI went public in December via a SPAC merger with Cantor Equity Partners, entering the market as a bitcoin treasury firm holding 43,514 BTC. At IPO it said its focus was “capital-efficient bitcoin accumulation,” backed by Tether, Bitfinex and Jack Mallers. The proposed merger would expand XXI’s mandate beyond treasury holdings into operating businesses and recurring revenue streams, while preserving long-term bitcoin accumulation capabilities.
According to the press release, the combined entity would create a public company that layers treasury exposure with active mining, financial services and capital markets operations — moving XXI toward an integrated bitcoin platform rather than a pure treasury play. No further details on deal structure, valuation or timing were provided.
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