Shares of Bitcoin-focused firm Twenty One Capital (XXI) rose more than 8% in after-hours trading Wednesday after major 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 in favor of XXI’s merger with Strike, the 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 will make XXI the premier Bitcoin public company in the world: a public company that combines Bitcoin vaults, mining, financial services, lending, capital markets and strategic integration into a comprehensive platform,” the press release stated.
No timetable for the merger was disclosed.
Led by Raphael Zagury, Elektron Energy manages approximately 5% of the current Bitcoin network’s computing power, with a total production cost of less than $60,000 per Bitcoin.
Tether also proposed that Zagury serve as president of the combined entity, combining his mining and capital markets experience with Mallers’ product and consumer Bitcoin leadership.
XXI went public last December through a SPAC merger with Cantor Equity Partners. The company entered the market as a Bitcoin finance company with 43,514 BTC and is 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 occurs, the company will extend its previous financial commitments to other parts of the Bitcoin service, the press release said.
The statement added: “The combined transaction will move XXI beyond pure financial exposure to a platform with operating businesses, recurring revenue opportunities and long-term Bitcoin accumulation capabilities.”