TL;DR:
- Tether proposed merging Twenty One Capital with Strike and Elektron Energy in a two-stage deal to create the largest publicly traded Bitcoin firm.
- Twenty One Capital rose 6.6% in after-hours trading following the announcement, though it has fallen 15.8% year-to-date.
- Elektron Energy manages approximately 50 EH/s of hashrate, equivalent to 5% of the Bitcoin network. Its production costs are below $60,000 per BTC.
Tether proposed this week a two-stage merger that would combine Twenty One Capital (NYSE: XXI), Strike and Elektron Energy into a single publicly traded company with mining, financial services and Bitcoin treasury businesses. The proposal was announced by Tether Investments, XXI’s majority shareholder, which stated its intention to vote in favor of the transactions.
Tether’s Proposal
The plan first contemplates merging XXI with Strike, the Bitcoin financial services firm founded by Jack Mallers, available in more than 100 countries and focused on Bitcoin buying, selling, custody and backed loans. Once that stage is completed, the resulting entity would merge with Elektron Energy, a large-scale mining operator led by Raphael Zagury, who was also proposed by Tether to assume the chairmanship of the resulting entity.
Much More Than a Treasury
Twenty One Capital went public in December 2025 through a SPAC merger in New York. Following the announcement of the proposal, its shares climbed 6.6% in Wednesday’s after-hours session, though they have fallen 15.8% year-to-date. The company was originally conceived as a Bitcoin treasury vehicle, a model that Tether’s proposal seeks to far surpass.
According to the official statement, the transaction would allow the resulting entity to combine Bitcoin treasury, mining, financial services, lending, capital markets and strategic consolidation into an integrated platform. Strike would contribute regulatory infrastructure and global distribution, while Elektron would add its mining operational capacity with production costs below $60,000 per Bitcoin and more than 5,500 BTC mined in its track record.
Tether emphasized that the goal is to position XXI as “the world’s leading publicly traded Bitcoin company”, with recurring revenue and long-term accumulation capabilities. Details on terms, timelines and governance structure will be disclosed as negotiations progress.
