Shares of Twenty One Capital (XXI), a firm specializing in bitcoin, have risen by over 8% in after-hours trading on Wednesday. This surge follows the announcement from majority shareholder Tether Investments about a proposed merger with Strike and Elektron Energy. According to a press release, Tether Investment plans to vote its shares in favor of merging XXI with Strike—a global bitcoin financial services company co-founded by Jack Mallers—and Elektron Energy.
Mallers, who is also the CEO of XXI, highlighted that if these transactions are completed, XXI would emerge as the leading listed Bitcoin company globally. The envisioned entity will integrate Bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into a single platform, according to the press release.
The merger’s terms or timeline remain undisclosed. Elektron Energy, led by Raphael Zagury, manages about 5% of the bitcoin network’s computing power with production costs under $60,000 per bitcoin. Tether has also suggested that Zagury take on the role of President in the merged entity, combining his expertise in mining and capital markets with Mallers’ leadership in product and consumer bitcoin services.
XXI became publicly traded last December through a SPAC merger with Cantor Equity Partners as a Bitcoin treasury firm holding 43,514 BTC. Backed by Tether, Bitfinex, and Strike CEO Jack Mallers, XXI initially aimed at capital-efficient Bitcoin accumulation.
The press release stated that the proposed merger would expand XXI’s operations beyond mere treasury exposure to encompass operating businesses with recurring revenue opportunities and long-term Bitcoin accumulation capabilities.