Shares of bitcoin-focused company Twenty One Capital (XXI) rose more than 8% in after-hours trading on Wednesday after majority shareholder Tether Investments proposed a merger with Strike and Elektron Energy.
Tether Investment, the independent investment arm of the stablecoin issuer, said it intends to vote its shares in favor of combining XXI with Strike, a global bitcoin financial services company founded by Jack Mallers and Elektron Energy, according to a press release. Mallers is also the CEO of XXI.
“If completed, these transactions would position XXI to become the world’s leading listed Bitcoin company: a public company that combines Bitcoin treasury, mining, financial services, lending, capital markets and strategic consolidation into one integrated platform,” according to the press release.
Terms and timelines of the merger were not disclosed.
Led by Raphael Zagury, Elektron Energy manages approximately 5% of the computing power of the current bitcoin network with total production costs less than $60,000 per bitcoin.
Tether also proposed that Zagury serve as president of the combined entity, combining his experience in mining and capital markets with Mallers’ leadership in bitcoin products and consumption.
XXI went public in December of last year through a SPAC merger with Cantor Equity Partners. The company entered the market as a bitcoin treasury firm with 43,514 BTC and is backed by Tether, Bitfinex and Strike CEO Jack Mallers. At the time, he said he would focus on “capital-efficient bitcoin accumulation.”
If the new merger goes through, the company will expand this previous treasury commitment to other parts of bitcoin services, according to the press release.
“The combined transactions would take XXI beyond treasury-only exposure and towards a platform with operational businesses, recurring revenue opportunities and long-term Bitcoin accumulation capabilities,” the statement added.
