Twenty One Capital (XXI) Stock Rallies on Tether's Ambitious Three-Way Merger Proposal

Key Takeaways

Table of Contents

Tether has announced plans to merge Twenty One Capital (XXI), Strike, and Elektron Energy into one entity
XXI shares climbed more than 6% in extended trading after the merger announcement
The proposed combination would integrate Bitcoin treasury management, mining operations, and payment services
Jack Mallers would assume an executive position; Elektron’s Raphael Zagury is suggested for the president role
Deal specifics including valuation and completion timeline remain undisclosed

Shares of Twenty One Capital (XXI) experienced a significant after-hours rally on Wednesday, surging over 6% following a merger proposal from its majority stakeholder Tether Investments. The plan involves a three-way combination with cryptocurrency payment platform Strike and Bitcoin mining operation Elektron Energy.

Twenty One Capital Inc, XXI

After finishing regular trading down 1.7% at $7.83, XXI shares soared to an after-hours peak of $9.28 before leveling off at $8.35.

According to the announcement, Tether plans to use its ownership position in XXI to support both proposed transactions. The first transaction would merge XXI with Strike, while the second would incorporate Elektron Energy, ultimately forming a single publicly traded Bitcoin-focused enterprise.

Tether Investments Proposes Merger Plans at Twenty-One Capital to Accelerate its Strategic Direction
Read more: https://t.co/aed2IjaWwj
— Tether (@tether) April 29, 2026

XXI’s stock performance has faced headwinds throughout the current year. The shares have declined over 10.5% since January, mirroring the downward trajectory of Bitcoin prices.

With a holdings position of 43,514 BTC, the company ranks as the second-largest public Bitcoin holder. Only Strategy, Inc. surpasses it with a substantial position of 818,334 BTC.

Strategic Assets From Each Entity

Strike’s contribution to the merger would include what Tether characterized as a profitable financial services ecosystem, complemented by worldwide reach and established regulatory frameworks.

Elektron Energy would bring substantial Bitcoin mining infrastructure to the table. The company controls approximately 5% of the Bitcoin network’s aggregate computational capacity, with production expenses reportedly under $60,000 per coin.

The merged organization would encompass Bitcoin treasury operations, mining facilities, financial services, lending products, and capital markets functions within a single public company framework.

“These combined transactions would transform XXI from a pure-play treasury holder into a diversified platform featuring active business operations, consistent revenue streams, and sustainable Bitcoin accumulation strategies,” Tether explained in its announcement.

Proposed Management Team

Tether has recommended Raphael Zagury, founder and CEO of Elektron, to serve as president of the newly formed company.

Jack Mallers, who founded and leads Strike while also serving as co-founder and CEO of XXI, would maintain an executive position within the consolidated organization.

Tether characterized this leadership combination as uniting “Mallers’ innovation in products, branding, and consumer Bitcoin solutions with Zagury’s expertise in capital markets, operations, and strategic implementation.”

Additional leadership details were not disclosed in the announcement.

XXI completed its public debut in December via a SPAC transaction with Cantor Equity Partners. The company launched with backing from Tether, Bitfinex, and Mallers, pursuing a strategy focused on cost-effective Bitcoin acquisition.

Should these mergers proceed as outlined, the company’s mission would evolve significantly beyond its current Bitcoin treasury model.

Tether has not revealed the financial parameters or expected completion schedule for either proposed transaction.