Tether Proposes Strategic Three-Way Merger to Integrate Bitcoin Mining and Payments

Tether, the majority shareholder of Twenty One Capital (XXI), has proposed a complex three-way merger involving the Bitcoin payments firm Strike and the mining company Elektron Energy. The proposal outlines a sequence where Twenty One Capital first merges with Strike, followed by a subsequent merger with Elektron Energy. This strategic consolidation is designed to evolve Twenty One Capital's business model. By integrating Strike's financial services and regulatory infrastructure with Elektron's large-scale mining capabilities, the new entity intends to move beyond simple Bitcoin treasury exposure toward a model based on recurring revenue and operational depth. Under the proposed leadership structure, Elektron CEO Raphael Zagury would serve as president of the combined company, while Strike founder Jack Mallers would maintain an executive role. Tether stated that this structure is intended to blend Mallers' consumer Bitcoin leadership with Zagury's experience in capital markets and execution. Twenty One Capital currently holds 43,514 Bitcoin, making it the second-largest public holder of the asset, trailing only Strategy, Inc., which holds 818,334 Bitcoin. The company's share price had declined over 10.5% this year in line with Bitcoin's price movements prior to the announcement. The market reacted positively to the news in after-hours trading. While shares of Twenty One Capital closed Wednesday down 1.7% at $7.83, they spiked to a high of $9.28 before settling at $8.35, representing a 6.6% gain following the proposal.