Shares of Twenty One Capital (XXI), a firm specializing in Bitcoin, surged by over 8% during after-hours trading on Wednesday. This increase follows the announcement from Tether Investments, the majority shareholder, regarding a proposed merger with Strike and Elektron Energy.
Tether Investments, which operates independently as the investment branch of the stablecoin issuer, expressed its intention to vote in favor of merging XXI with Strike—a global financial services company for Bitcoin founded by Jack Mallers—and Elektron Energy. Notably, Mallers also serves as CEO of XXI.
The press release stated that “if finalized, these transactions would position XXI to emerge as the leading publicly traded Bitcoin company globally; an entity that integrates Bitcoin treasury management, mining operations, financial services, lending solutions, capital markets activities and strategic consolidation into one cohesive platform.”
Details regarding timelines or specific terms for this merger have not been disclosed.
Elektron Energy is led by Raphael Zagury and currently manages around 5% of the total computing power within the Bitcoin network while maintaining production costs below $60k per bitcoin.
Tether has also suggested appointing Zagury as President of this new combined entity. This decision aims to leverage his expertise in mining and capital markets alongside Mallers’ leadership in product development and consumer engagement within the Bitcoin sector.
Last December marked XXI’s public debut through a SPAC merger with Cantor Equity Partners. Initially entering as a bitcoin treasury firm holding 43,514 BTC—backed by Tether and Bitfinex along with CEO Jack Mallers—the company had committed itself to “capital-efficient bitcoin accumulation.”
If this proposed merger proceeds successfully, it will broaden their previous focus on treasury management into additional areas within cryptocurrency services according to their press release.
The statement further emphasized that “the merged transactions would elevate XXI beyond mere treasury exposure towards establishing a platform enriched with operational businesses offering recurring revenue streams alongside long-term capabilities for accumulating Bitcoin.”
FAQ
- What is Twenty One Capital (XXI)?
Twenty One Capital is a firm focused on investing in Bitcoin-related ventures including treasury management and financial services. - Who are Tether Investments?
Tether Investments is an independent investment arm associated with Tether Ltd., known primarily for issuing stablecoins like USDT. - What companies are involved in this proposed merger?
The proposed merger involves Twenty One Capital (XXI), Strike—a global bitcoin financial service provider—and Elektron Energy—a mining operation managing significant computing power within the network. - No timeline was provided; when can we expect updates about this deal?
As no specific timeline has been shared yet regarding finalization or progress updates about this deal have been released at present time. - If completed what will be different about XXIs operations?
If successful it will expand beyond just managing assets towards creating integrated platforms encompassing various aspects like operational businesses & recurring revenues related directly linked cryptocurrencies such accumulating them over time efficiently!