Shares of Twenty One Capital (XXI) jumped more than 8% in after-hours trading on April 29 after majority shareholder Tether Investments proposed a three-way merger with Bitcoin financial services firm Strike and mining operator Elektron Energy.
"If completed, these transactions would position XXI to become the premier listed Bitcoin company in the world," Tether said in a press release. The firm stated its intention to vote its majority stake in favor of the proposal, which aims to create an integrated public company combining Bitcoin treasury, mining, and financial services.
The deal would unite XXI's 43,514 BTC treasury, the second-largest public holding behind Strategy, Inc.'s 818,334 BTC, with Strike's global payments infrastructure and Elektron's large-scale mining operations. Elektron controls approximately 5% of the Bitcoin network's computing power with production costs under $60,000 per coin. Shares of XXI, which had fallen over 10.5% year-to-date, rallied from a closing price of $7.83 to an after-hours peak of $9.28 before settling around $8.35.
The proposed combination would transform Twenty One Capital from a passive Bitcoin holding company into a diversified operating business with recurring revenue and sustained BTC accumulation capabilities. The move signals a significant strategic expansion for the firm, which went public just last December via a SPAC merger with Cantor Equity Partners.
The merger aims to create a single public entity that consolidates every stage of the Bitcoin value chain. Strike brings a profitable, regulated financial services business operating in over 100 countries, providing a global distribution network for the combined company. Elektron Energy contributes industrial-scale mining capacity, offering a direct and cost-effective method for accumulating more Bitcoin.
This vertical integration of treasury, mining, and financial services under one publicly traded roof is a novel approach in the crypto industry. "These combined deals would transform XXI from a pure treasury play into a diversified platform featuring active business operations, recurring revenue streams, and sustained Bitcoin accumulation strategies," Tether's announcement detailed.
Tether has put forward a leadership plan that pairs operational and market expertise. It recommended that Elektron Energy's founder and CEO, Raphael Zagury, serve as President of the new entity. Jack Mallers, the founder and CEO of both Strike and Twenty One Capital, would continue in an executive role.
The company described the proposed structure as a way to combine "Mallers’ product, brand, and consumer Bitcoin leadership with Zagury’s capital markets, operating, and execution experience." Financial terms and a potential timeline for the completion of the mergers were not disclosed.
This article is for informational purposes only and does not constitute investment advice.
