Twenty One Capital surges after Tether proposes three-way merger with Strike and Elektron

Shares in Twenty One Capital (XXI) surged in after-hours trading on Wednesday after Tether, the company’s majority shareholder, proposed a three-way merger with Bitcoin payments firm Strike and Bitcoin mining company Elektron Energy. The proposal marks a significant step toward consolidating distinct sectors of the crypto economy under a single publicly traded entity.

Tether’s merger proposal details

Tether announced Wednesday that it intends to vote in favor of a merger between Twenty One Capital and Strike, followed by a subsequent merger of the combined company with Elektron Energy. The stablecoin issuer did not disclose financial terms or a timeline for completion but outlined a proposed leadership structure for the new entity.

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Under the plan, Elektron founder and CEO Raphael Zagury would serve as president of the merged company. Jack Mallers, founder and CEO of Strike and co-founder and CEO of Twenty One Capital, would also hold an executive role. Tether stated that the arrangement is designed to combine Mallers’ expertise in consumer Bitcoin products and brand building with Zagury’s capital markets and operational experience.

“Strike would be contributing a profitable financial services platform, global distribution and regulatory infrastructure,” Tether said, adding that Elektron would bring “large-scale Bitcoin mining infrastructure, operational depth and proven execution capabilities.”

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Market reaction and stock performance

Twenty One Capital shares closed Wednesday’s regular session at $7.83, down 1.7% on the day. However, after the announcement, the stock jumped to an intraday high of $9.28 before settling at $8.35, representing a 6.6% gain in after-hours trading. The company holds 43,514 Bitcoin, making it the second-largest public company holder of the cryptocurrency behind Strategy, Inc., which holds 818,334 Bitcoin.

XXI shares have declined roughly 10.5% year-to-date, tracking Bitcoin’s broader price weakness. The proposed merger appears to have renewed investor interest by signaling a strategic shift beyond passive Bitcoin treasury management.

What the merger means for Twenty One Capital’s strategy

Tether indicated that a successful merger would move Twenty One Capital “beyond treasury exposure alone and toward a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.” This represents a notable pivot for the company, which went public in December 2025 through a merger with Cantor Equity Partners, initially positioning itself as a pure-play Bitcoin treasury vehicle.

The addition of Strike’s payment infrastructure and Elektron’s mining operations would give Twenty One Capital diversified revenue streams and vertical integration within the Bitcoin ecosystem. This could reduce the company’s reliance on Bitcoin’s spot price performance for shareholder returns.

Industry context and implications

The proposed consolidation comes at a time when crypto companies are increasingly seeking scale and operational efficiency. Tether’s role as the driving force behind the merger underscores its growing influence in shaping corporate crypto strategies. The stablecoin issuer has been expanding its footprint beyond stablecoins, recently launching an open-source mining framework aimed at unifying Bitcoin infrastructure.

If completed, the three-way merger would create a publicly traded entity with capabilities spanning Bitcoin payments, mining, and corporate treasury management. This structure is relatively novel in the public markets and could serve as a template for future crypto industry consolidation.

Conclusion

Tether’s proposed three-way merger of Twenty One Capital, Strike, and Elektron Energy represents a strategic effort to build a diversified Bitcoin platform with recurring revenue streams and operational depth. While terms and a timeline remain undisclosed, the market’s positive reaction suggests investor appetite for integrated crypto business models. The proposal is still subject to shareholder votes and regulatory approvals.

FAQs

Q1: Why did Twenty One Capital shares rise after the merger announcement?
Investors reacted positively to Tether’s proposal to merge Twenty One Capital with Strike and Elektron Energy, viewing the move as a strategic shift from passive Bitcoin holdings to a diversified operating platform with recurring revenue potential.

Q2: What roles will Jack Mallers and Raphael Zagury play in the merged company?
Tether proposed that Raphael Zagury serve as president of the new entity, while Jack Mallers would hold an executive role. The leadership structure aims to combine Mallers’ consumer Bitcoin expertise with Zagury’s capital markets and operational experience.

Q3: How much Bitcoin does Twenty One Capital currently hold?
Twenty One Capital holds 43,514 Bitcoin, making it the second-largest public company holder behind Strategy, Inc., which holds 818,334 Bitcoin.

Written by

Jackson Miller

Jackson Miller is a senior cryptocurrency journalist and market analyst with over eight years of experience covering digital assets, blockchain technology, and decentralized finance. Before joining CoinPulseHQ as lead writer, Jackson worked as a financial technology correspondent for several business publications where he developed deep expertise in derivatives markets, on-chain analytics, and institutional crypto adoption. At CoinPulseHQ, Jackson covers Bitcoin price movements, Ethereum ecosystem developments, and emerging Layer-2 protocols.