Shares of bitcoin-focused Twenty One Capital (XXI) climbed more than 8% in after-hours trading on Wednesday after majority holder Tether Investments proposed combining the company with Strike and Elektron Energy. In a press release, Tether’s independent investment arm said it plans to vote its shares in favor of the deal.
A broader Bitcoin platform is the stated goal
Strike is the global bitcoin financial services company founded by Jack Mallers, who also serves as CEO of Twenty One Capital. Elektron Energy is led by Raphael Zagury. The release said that, if completed, the transactions would turn XXI into a listed bitcoin platform spanning treasury holdings, mining, financial services, lending, capital markets and strategic consolidation.
No transaction terms or timeline were disclosed. Still, the proposal lays out a clear shift in direction. Twenty One Capital was built around bitcoin treasury exposure, and the merger plan points to an operating model tied to a wider set of bitcoin businesses.
Elektron Energy brings mining scale
According to the release, Elektron Energy manages about 5% of the current Bitcoin network’s computing power, with all-in production costs below $60,000 per bitcoin. Tether also proposed that Zagury become president of the combined company, pairing his experience in mining and capital markets with Mallers’ product and consumer-facing bitcoin background.
From treasury company to operating business
Twenty One Capital went public in December last year through a SPAC merger with Cantor Equity Partners. It entered the public market as a bitcoin treasury firm holding 43,514 BTC, backed by Tether, Bitfinex and Strike CEO Jack Mallers. At the time, the company said it would focus on “capital-efficient bitcoin accumulation.”
If the new merger moves ahead, that treasury strategy would be expanded into additional segments of bitcoin services. The company said the combined transactions would move XXI beyond treasury exposure alone and toward a platform with operating businesses, recurring revenue opportunities and long-term bitcoin accumulation capacity.