Tether Proposes Three-Way Merger to Create Integrated Bitcoin Powerhouse

Shares of Twenty One Capital (XXI) climbed over 8% in after-hours trading Wednesday after Tether Investments announced a proposal to merge the company with Strike and Elektron Energy. The proposal, initiated by the independent investment arm of the stablecoin issuer, seeks to combine the three entities into a comprehensive Bitcoin-focused platform. If completed, the transaction would transform XXI from a primary Bitcoin treasury firm into a diversified operator. The new entity would integrate Bitcoin treasury management, mining operations, financial services, lending, and capital markets into one integrated public platform. Jack Mallers, the founder of Strike and current CEO of XXI, would lead the combined company alongside Raphael Zagury. Elektron Energy, led by Zagury, brings substantial infrastructure to the deal, currently managing approximately 5% of the global Bitcoin network's computing power. The firm reports all-in production costs below $60,000 per bitcoin. Under the proposal, Zagury would serve as President, pairing his mining expertise with Mallers' leadership in consumer Bitcoin products. XXI originally went public in December of last year via a SPAC merger with Cantor Equity Partners. At its inception, the company focused on capital-efficient Bitcoin accumulation, entering the market with a treasury of 43,514 BTC. This proposed merger marks a strategic shift toward generating recurring revenue through operating businesses rather than relying solely on treasury exposure. While the strategic vision has been outlined, no specific financial terms or timelines for the merger have been disclosed at this time.