Tether Proposes Three-Way Merger To Build World'S Premier Bitcoin Company
Tether Investments has proposed merging Twenty One Capital ($XXI) with Jack Mallers' Strike and Bitcoin miner Elektron Energy in a two-stage deal to create the world's leading publicly listed Bitcoin company.
@Tether_to Investments, the investment arm of stablecoin giant Tether, has proposed a three-way merger combining Twenty One Capital ($XXI), @Strike, and Elektron Energy — a deal that, if completed, would position $XXI as the premier listed Bitcoin company in the world, uniting Bitcoin treasury, mining, financial services, lending, and capital markets under a single public entity.
The transaction is structured in two stages. Under the proposal, $XXI would first merge with @Strike, Jack Mallers' Bitcoin financial services firm, before the combined entity then merges with Elektron Energy, a large-scale Bitcoin mining platform.
What Each Party Brings to the Table
Each company contributes a distinct and complementary piece of Bitcoin infrastructure. $XXI holds 43,514 $BTC valued at approximately $3.3 billion, ranking among the largest corporate Bitcoin treasuries globally. @Strike, founded and led by Jack Mallers — who also serves as CEO of $XXI — operates in more than 100 countries, enabling users to buy, sell, hold, transact, and borrow against Bitcoin. Mallers also confirmed this week that @Strike has secured a $2.1 billion credit facility to meet growing lending demand.
On the mining side, Elektron Energy brings significant industrial scale. Led by Raphael Zagury, Elektron manages approximately 50 EH/s of hashrate, representing roughly 5% of the entire Bitcoin network. The firm has mined more than 5,500 $BTC across its portfolio and maintains all-in production costs below $60,000 per coin — one of the more efficient cost structures in the sector.
Market Reaction and Next Steps
$XXI shares jumped 6.6% in after-hours trading on the news. Speaking on stage at Bitcoin Conference 2026, Mallers endorsed the proposal, calling it "a great idea." Tether Investments has also recommended that Zagury serve as President of the merged company, pairing his capital markets and operational experience with Mallers' consumer brand leadership.
No transaction terms, timelines, or governance details have been disclosed. Tether said further information will follow as discussions progress. $XXI went public in December 2025 through a SPAC merger with Cantor Equity Partners, with @Tether_to, Bitfinex, and Mallers among its original backers.
Sources:
Tether Investments Official Press Release
Decrypt — Twenty-One Weighs Mergers With Strike, Elektron
CoinDesk — XXI Higher on Merger Plans With Strike and Elektron Energy
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Author
Jon WangJon studied Philosophy at the University of Cambridge and has been researching cryptocurrency full-time since 2019. He started his career managing channels and creating content for Coin Bureau, before transitioning to investment research for venture capital funds, specializing in early-stage crypto investments. Jon has served on the committee for the Blockchain Society at the University of Cambridge and has studied nearly all areas of the blockchain industry, from early stage investments and altcoins, through to the macroeconomic factors influencing the sector.