Key Highlights
- Tether announced plans to merge Twenty One Capital (XXI), Strike, and Elektron Energy into one entity
- XXI shares climbed more than 6% during after-hours trading Wednesday
- The proposed consolidation would create a unified Bitcoin platform spanning treasury, mining, and payments
- Strike’s Jack Mallers and Elektron’s Raphael Zagury would assume executive leadership positions
- Deal specifics and completion timeline remain undisclosed
Shares of Twenty One Capital (XXI) rallied over 6% in extended trading Wednesday following an announcement from majority investor Tether Investments outlining a proposed three-way consolidation involving Bitcoin payment platform Strike and crypto mining operation Elektron Energy.
The shares concluded Wednesday’s regular session at $7.83, reflecting a 1.7% decline, before surging to an after-hours peak of $9.28 and later stabilizing at $8.35.
According to the announcement, Tether plans to cast its ownership stake in XXI in support of both proposed transactions. The initial deal would unite XXI with Strike, while the subsequent agreement would incorporate Elektron Energy, establishing a single publicly traded Bitcoin-centric enterprise.
XXI has faced headwinds throughout the current year. Year-to-date performance shows the stock declining more than 10.5%, mirroring the broader weakness in Bitcoin valuations.
The firm presently maintains holdings of 43,514 BTC, positioning it as the second-largest corporate Bitcoin holder. Strategy, Inc. maintains the top position with 818,334 BTC in its reserves.
Each Company’s Strategic Contribution
Strike would deliver what Tether characterized as a cash-flow positive financial services operation, complemented by worldwide distribution channels and established regulatory frameworks.
Elektron Energy would introduce industrial-scale Bitcoin mining capabilities. The company controls approximately 5% of the Bitcoin network’s aggregate computational capacity, with comprehensive production expenses reportedly under $60,000 per Bitcoin.
The consolidated structure would encompass Bitcoin treasury management, mining operations, financial services offerings, lending solutions, and capital markets activities within a single public company framework.
“These combined deals would transform XXI from a treasury-focused entity into a diversified platform featuring operational businesses, sustainable revenue streams, and enhanced Bitcoin acquisition capacity over the long term,” Tether stated in its official announcement.
Proposed Management Team
Tether’s proposal designates Elektron’s founder and chief executive Raphael Zagury for the president position within the merged organization.
Jack Mallers, who serves as both Strike’s founder and CEO as well as XXI’s co-founder and chief executive, would maintain an executive position in the consolidated firm.
Tether characterized this leadership arrangement as merging “Mallers’ expertise in product development, brand building, and consumer-focused Bitcoin innovation with Zagury’s background in capital markets, operations management, and strategic execution.”
Additional management structure details were not revealed.
XXI completed its public debut in December via a SPAC transaction with Cantor Equity Partners. The company launched with backing from Tether, Bitfinex, and Mallers, establishing a mission centered on capital-efficient Bitcoin acquisition strategies.
Should these proposed mergers reach completion, that founding objective would broaden significantly beyond maintaining Bitcoin as a balance sheet asset.
Tether has not revealed valuation terms or projected timelines for either deal.
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