Tether Pushes Bold Bitcoin Bloc Merger
Tether Investments, the independent investment division of the stablecoin giant Tether, has formally proposed a multi-step merger involving Twenty One Capital (XXI), Strike, and Elektron Energy. The plan, which was announced on Wednesday, would see XXI first combine with Strike—both led by Jack Mallers—before merging with bitcoin mining operator Elektron Energy. No specific deal terms or expected closing dates have been disclosed by any party involved.
Tether is already the majority shareholder of XXI, having backed its public debut in December 2025 via a SPAC merger with Cantor Equity Partners. The move signals Tether’s intent to further consolidate its influence across bitcoin finance, mining, and infrastructure. As part of the proposal, Tether has put forward Elektron Energy’s founder and CEO Raphael Zagury as president of the combined company.
Elektron Energy currently manages about 50 exahashes per second, representing roughly 5% of the Bitcoin network's computing power.
XXI Stock Pops on Merger Buzz
Shares of Twenty One Capital responded swiftly to the merger news. On Wednesday, XXI closed regular trading at $7.83 before surging over 8% in after-hours activity. The price later settled at $8.35, marking a 6.6% gain after the bell and reflecting renewed investor interest despite the stock still being down 15.8% year-to-date.
This uptick comes after months of muted performance for XXI since its public listing in December last year, when it entered Wall Street with an initial holding of 43,500 bitcoin—making it the second-largest bitcoin treasury among public companies.
The market’s reaction underscores both optimism and uncertainty: while investors are clearly intrigued by the prospect of uniting three major bitcoin players, no financial details or projected synergies have been released to clarify how value will be created or distributed.
Jack Mallers’ Double Role in Spotlight
Jack Mallers stands at the center of this proposed consolidation. As CEO of both XXI and Strike—and a co-founder of XXI—Mallers would take on an executive role in the merged entity if the deal proceeds as outlined. His leadership at Strike has seen recent innovation: at the Bitcoin 2026 Conference, Mallers introduced lending proof-of-reserves and a “volatility-proof” loan structure built in collaboration with Tether.
Strike also secured a $2.1 billion credit facility to support its lending business, offering rates from 10.5% APR for smaller loans to 7.49% for larger ones.
On paper, Mallers’ dual leadership could streamline integration; but combining two firms he leads may also raise questions about governance and checks on executive power within the new structure.
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Elektron’s Zagury Tapped for President
Elektron Energy brings significant mining muscle to the table, managing approximately 50 exahashes per second (EH/s)—about 5% of global Bitcoin network computing power. With all-in production costs reportedly below $60,000 per bitcoin mined, Elektron is positioned as one of the more efficient operators in today’s competitive landscape.
Tether’s proposal names Raphael Zagury as president of the combined company—a move that would place operational oversight in experienced hands while potentially balancing Jack Mallers’ financial services focus.
Why it Matters: Uniting Major BTC Players
If completed, this merger would create a vertically integrated entity spanning bitcoin treasury management (XXI), trading and lending (Strike), and large-scale mining (Elektron). According to cointelegraph.com, Tether intends to use its majority stake in XXI to vote in favor of both phases of the merger plan.
Yet several key questions remain unanswered: there are no disclosed terms or valuations for any leg of this deal; it is unclear how existing shareholders—beyond Tether itself—will be treated; and no timeline has been provided for regulatory review or closing conditions. While each firm brings distinct strengths—XXI’s 43,500 BTC holdings, Strike’s lending suite and proof-of-reserves system, Elektron’s mining scale—the practical impact will depend on execution details that have yet to surface.
The proposal highlights how Tether is leveraging its capital position not only within stablecoins but across multiple layers of bitcoin infrastructure. Whether this signals greater stability or introduces new risks will likely hinge on how governance and integration challenges are addressed in coming months.
Signals yet to emerge
No terms or timelines have been disclosed for Tether Investments’ proposed three-way merger involving Twenty One Capital, Strike, and Elektron Energy, so whether and when shareholders will vote on the plan remains unclear; if Tether, as majority shareholder, formally schedules a vote or releases deal terms, immediate clarity on the merger’s next steps would follow.
