Tether Proposes Merging XXI, Strike and Elektron Into Major Bitcoin Conglomerate
Tether Investments has proposed a three-way merger of Twenty-One Capital, Strike, and Elektron Energy to build a leading public bitcoin company combining treasury reserves, mining operations, and financial services.
Tether Eyes Three-Way Merger to Build Bitcoin Powerhouse
Tether Investments, the investment arm of the world's largest stablecoin issuer, has proposed merging three companies — Twenty-One Capital (XXI), financial services provider Strike, and mining platform Elektron Energy — into what it envisions as a leading public bitcoin organization.
«Tether Investments Proposes Merger Plans at Twenty-One Capital to Accelerate its Strategic Direction» — Tether (@tether), original post
Why This Matters
Twenty-One Capital currently ranks second among all publicly traded companies by bitcoin holdings, with 43,514 BTC worth approximately $3.3 billion on its balance sheet. Only Strategy surpasses it at 818,334 BTC, while Japan's Metaplanet (40,177 BTC) and miner MARA Holdings (38,689 BTC) trail behind. Transforming XXI from a passive bitcoin holder into a fully operational platform with recurring revenue streams and mining capacity could reshape the competitive landscape of public bitcoin companies.
What Each Party Brings to the Table
Under the proposal, each entity would contribute distinct capabilities to the combined organization:
- Twenty-One Capital (XXI) — bitcoin treasury reserves and public company status.
- Strike — a financial platform, global distribution network, and regulatory infrastructure.
- Elektron Energy — bitcoin mining systems and operational expertise. The platform manages approximately 50 EH/s of hash power, representing roughly 5% of the total network hashrate. Elektron has mined over 5,500 BTC to date.
The merged entity would simultaneously hold bitcoin treasury reserves, mine cryptocurrency, and provide lending services. Tether Investments has recommended appointing Elektron head Rafael Zagury as president of the combined company. Zagury would oversee capital markets and operations, while Strike founder Jack Mallers would lead product development and brand strategy.
Deal Details Still Forthcoming
Specific transaction terms have not yet been disclosed. Further details are expected to emerge as negotiations progress. The core vision is to convert XXI from a straightforward bitcoin holder into a platform with operational business lines, steady revenue sources, and mechanisms for continued cryptocurrency accumulation.
Growing Institutional Appetite for Bitcoin Exposure
Tether's initiative coincides with rising institutional demand for bitcoin-linked assets. Canadian sovereign fund AIMCo, which manages $142 billion in assets, disclosed the purchase of 1.38 million shares of Strategy worth $219 million. This marks the first direct bitcoin-related allocation by one of Canada's largest institutional investment managers.
«JUST IN: $142 Billion Canadian government-owned Alberta Investment Management Corp just disclosed they bought 1.38 million shares worth $219 million of #Bitcoin treasury company Strategy $MSTR for the first time. One of Canada's largest institutional manager just made first BTC…» — BitcoinTreasuries.NET (@BTCtreasuries), original post
Earlier in April, Tether partnered with Canaan and ACME Swisstech to unveil modular mining infrastructure and released an open-source operating system for bitcoin mining hardware. The proposed conglomerate built around XXI, Strike, and Elektron Energy represents a logical next step in Tether's strategy to expand its bitcoin ecosystem footprint well beyond stablecoins.
Frequently Asked Questions
What is Tether's proposed merger of XXI, Strike, and Elektron?
Tether Investments has proposed combining Twenty-One Capital (XXI), financial services provider Strike, and mining platform Elektron Energy into a single public bitcoin company. The merged entity would handle BTC treasury management, mining operations, and lending services.
How much bitcoin does Twenty-One Capital hold?
Twenty-One Capital holds 43,514 BTC worth approximately $3.3 billion, making it the second-largest public holder of bitcoin. Only Strategy exceeds it with 818,334 BTC on its balance sheet.
What is Elektron Energy's mining hashrate?
Elektron Energy operates approximately 50 EH/s of mining capacity, which represents roughly 5% of the total Bitcoin network hashrate. The company has mined over 5,500 BTC.
Who will lead the combined bitcoin company after the merger?
Tether Investments recommended Elektron head Rafael Zagury as president of the combined entity, overseeing capital markets and operations. Strike founder Jack Mallers would be responsible for product development and brand strategy.
Why did Canadian fund AIMCo buy Strategy shares?
AIMCo, a Canadian sovereign fund managing $142 billion in assets, purchased 1.38 million shares of Strategy worth $219 million. This represents the fund's first direct allocation to bitcoin-related instruments, signaling growing institutional appetite for BTC exposure.
Read also
Bitcoin Down 2.5% Weekly: Jane Street Accusations & 7 Ethereum Forks
Bitcoin lost ~2.5% over the week amid macro shocks and geopolitical tensions. Jane Street faced market manipulation allegations while Ethereum unveiled an ambitious seven hard fork roadmap through 2029.
TON Wallet Introduces Yield Vaults for BTC, ETH, and USDT Directly in Telegram
TON Wallet has launched yield vaults for BTC, ETH, and USDT directly within Telegram, offering up to 18% APY on stablecoins through partnerships with Morpho, TAC, and Re7.
Weekly Recap: Aave Ecosystem Rescue Mobilizes 100,000 ETH and Quantum Computer Cracks 15-Bit ECC Key
Bitcoin held near $78,000, the DeFi community rallied over 100,000 ETH to help Aave recover from the Kelp hack, and a researcher cracked a 15-bit ECC key on a quantum computer.
Strategy Becomes Most-Shorted US Stock With $6B in Bets
Strategy tops the list of most-shorted large-cap US stocks with $6 billion in short positions, representing 14% of its market cap, as Bitcoin's decline erodes confidence in the company's debt-fueled BTC accumulation model.
Institutional Investors Dump ETF Shares Worth 25,000 BTC During Market Crash
Institutional investors massively sold Bitcoin ETF positions in Q4 2025, offloading shares equivalent to 25,098 BTC during the crypto market correction.
Bitcoin Hits $70,000 as Iran Ceasefire Talks Boost Risk Appetite
Bitcoin surged 4% to test the $70,000 level on April 6 amid reports of ceasefire negotiations between the US, Israel, and Iran. The derivatives market, however, sends mixed signals.