Shares of Bitcoin treasury firm Twenty One Capital (XXI) climbed nearly 8% in after-hours trading on Wednesday after majority stakeholder Tether Investments proposed a three-company merger with payments platform Strike and miner 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 added the new entity would combine "Bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one integrated platform."
The stock, which trades on the Nasdaq, ended the standard session down 1.7% at $7.83 but jumped to $8.35 in late trading. The proposed merger would first unite XXI with Strike, followed by the incorporation of Elektron Energy. The move aims to diversify XXI beyond its current strategy of holding Bitcoin, of which it owns 43,514 BTC, making it the second-largest public holder behind Strategy, Inc.
The deal would transform the company from a "pure treasury play into a diversified platform featuring active business operations, recurring revenue streams, and sustained Bitcoin accumulation strategies," according to Tether's statement. Strike brings a global financial services platform, while Elektron Energy controls approximately 5% of the Bitcoin network's computing power with production costs below $60,000 per coin.
Tether has put forward a leadership plan that pairs operational and product expertise. It recommended Elektron founder and CEO Raphael Zagury for the role of president, citing his capital markets and execution experience.
Jack Mallers, the founder and CEO of both Strike and XXI, would serve in an executive capacity. Tether said this structure is intended to combine "Mallers’ product, brand, and consumer Bitcoin leadership with Zagury’s capital markets, operating, and execution experience."
The announcement did not include financial terms or an expected timeline for the completion of the mergers. XXI originally went public in December through a SPAC transaction with Cantor Equity Partners, backed by Tether, Bitfinex, and Mallers with a focus on capital-efficient Bitcoin accumulation.
This article is for informational purposes only and does not constitute investment advice.
