XXI shares rise 8% after Tether announces plans to combine Bitcoin treasury, mining and financial services under a single listed company.
Shares of Twenty One Capital (XXI), the Bitcoin-focused company, surged more than 8% in after-hours trading on Wednesday, after major shareholder Tether Investments proposed a three-way merger with Strike and Elektron Energy. If completed, the deal would bring together Bitcoin treasury, mining, financial services, lending and capital markets under a single listed entity.
Tether Investments, the independent investment arm of the stablecoin issuer, announced its intention to vote its shares in favor of combining XXI with Strike – the global Bitcoin financial services company founded by Jack Mallers – and with Elektron Energy, a Bitcoin miner. Mallers also serves as CEO of XXI. According to the official press release, “if completed, these transactions would position XXI to become the world’s leading publicly listed Bitcoin company: a public company combining Bitcoin treasury, mining, financial services, lending, capital markets and strategic consolidation into a single integrated platform.”
Elektron Energy is led by Raphael Zagury and controls approximately 5% of the current computing power of the Bitcoin network, with all-in production costs below $60,000 per bitcoin. Tether has proposed that Zagury take on the role of Chairman of the combined entity, pairing his expertise in mining and capital markets with Mallers’ leadership in Bitcoin products and consumer services. Neither the financial terms nor the timeline for completing the merger have been disclosed.
XXI made its stock market debut in December of last year through a SPAC merger with Cantor Equity Partners, entering the market as a Bitcoin treasury company with 43,514 BTC in its portfolio. The company is backed by Tether, Bitfinex and Jack Mallers, and at the time of its listing had stated its intention to focus on “capital-efficient Bitcoin accumulation.”
