Shares of Twenty One Capital (XXI), the bitcoin-focused company, rose more than 8% after hours 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 first publicly traded Bitcoin company: a public company that combines Bitcoin treasury, mining, financial services, lending, capital markets and strategic consolidation into a single integrated platform,” according to the press release.
No timeline was disclosed for the merger.
Led by Raphael Zagury, Elektron Energy manages approximately 5% of the computing power of the current Bitcoin network with overall production costs of less than $60,000 per Bitcoin.
Tether also proposed that Zagury serve as chairman of the combined entity, combining his experience in mining and capital markets with Mallers’ leadership in consumer products and bitcoins.
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 company with 43,514 BTC and is backed by Jack Mallers, CEO of Tether, Bitfinex and Strike. At the time, he said he would focus on “capital-efficient bitcoin accumulation.”
If the new merger occurs, the company will extend this previous cash commitment to other parts of Bitcoin Services, the press release states.
“The combined transactions would enable XXI to move beyond just cash exposure and toward a platform with operational businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities,” the statement added.
