Twenty One Capital Stock Surges as Tether Proposes Major Bitcoin Merger

Shares of Twenty One Capital (XXI), a bitcoin-focused public company, jumped more than 8% in after-hours trading following news of a potential merger backed by Tether Investments. The proposal involves combining XXI with Strike, a global bitcoin financial services firm founded by Jack Mallers, and Elektron Energy, a bitcoin mining company with significant network presence.

Tether Investments, the independent investment arm of the stablecoin giant Tether, confirmed its intention to vote in favor of the merger. The move signals a strategic push to transform Twenty One Capital into a comprehensive bitcoin powerhouse. If completed, the deal would position XXI as a leading publicly traded bitcoin company, integrating multiple sectors including bitcoin treasury management, mining operations, lending services, capital markets, and financial infrastructure.

Jack Mallers, who currently serves as CEO of XXI and is the founder of Strike, is expected to play a central role in the combined entity. Meanwhile, Elektron Energy CEO Raphael Zagury has been proposed as President, bringing expertise in bitcoin mining and capital markets. Elektron Energy currently controls approximately 5% of the global bitcoin network’s computing power and operates with production costs below $60,000 per bitcoin, making it a competitive player in the mining sector.

Twenty One Capital went public in December through a SPAC merger with Cantor Equity Partners. At launch, the firm held over 43,000 BTC and focused primarily on capital-efficient bitcoin accumulation. Backed by Tether, Bitfinex, and Strike leadership, the company aimed to establish itself as a major bitcoin treasury firm.

The proposed merger would significantly expand XXI’s business model beyond simple bitcoin holdings. By integrating operational businesses and creating recurring revenue streams, the combined company aims to strengthen its long-term bitcoin accumulation strategy and market position. While no timeline or financial details have been disclosed, the announcement has already generated strong investor interest and boosted market confidence in XXI’s future growth.