sandmark.com
Tether Investments, the venture arm of the issuer of the world’s largest stablecoin (USDT), is backing a two-step merger that would combine its majority-owned Bitcoin treasury firm Twenty-One Capital (XXI) with payments platform Strike and Bitcoin miner Elektron Energy. The plan aims to create a comprehensive, NYSE-listed Bitcoin company that spans treasury holdings, mining, lending, payments and capital markets activities.
The transaction begins with a merger of NYSE-listed Twenty-One Capital and Strike, the Bitcoin financial services company. The resulting entity would then merge with Elektron Energy. Jack Mallers leads both Twenty-One Capital, where he serves as CEO, and Strike, which he co-founded.
Tether and Bitfinex hold majority ownership in Twenty-One Capital, with SoftBank maintaining a significant minority stake. Precise post-merger ownership percentages have not been disclosed, though Tether’s controlling position is expected to remain dominant, raising questions about minority shareholder dilution, including for SoftBank.
Twenty-One Capital ranks as the second-largest corporate Bitcoin holder, with 43,514 $BTC, behind Strategy. Elektron Energy, controlled by Tether co-founder and chair Giancarlo Devasini, operates approximately 50 EH/s of hash rate – roughly 5% of the Bitcoin network’s total computing power – with all-in production costs below $60,000 per $BTC.
Twenty-One Capital shares dipped 1.8% to $7.83 on 29 Apr.
Strategic rationale, quotes
Tether described the deal as positioning Twenty-One Capital to become "the premier listed Bitcoin company in the world." The combined platform would integrate treasury management, mining operations, payments, lending and capital markets into one public entity with diversified revenue streams.
Jack Mallers voiced strong support. "Simply put, I think it’s a great idea," he said, noting that building a broad Bitcoin company – rather than a narrow payments app – aligned with his original vision for Strike.
Tether Investments plans to recommend Raphael Zagury, founder and CEO of Elektron Energy, as president of the merged enterprise. The structure would move the company "beyond treasury exposure alone and toward a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities," according to the 29 Apr statement.
Potential conflicts, market context
Critics may scrutinize potential conflicts of interest, given Tether executives’ overlapping roles across the entities and the company’s history of regulatory scrutiny. Details on governance, transaction terms and minority shareholder protections remain undisclosed, with further information promised "as discussions progress."
Strike brings a profitable financial services platform operating in over 100 countries, with strong growth in Bitcoin-backed lending. The merger would expand its trajectory by pairing payments infrastructure with massive treasury holdings and low-cost mining capacity.
Valuation implications, comparisons
The move could be viewed as an ambitious attempt to differentiate from pure treasury plays like Strategy (MSTR), which holds hundreds of thousands of $BTC but focusses primarily on accumulation, or mining-focused firms like MARA Holdings. The integrated model, anchored by Elektron’s competitive production costs, could command a valuation premium through recurring revenues from mining, lending and payments, though integration risks and Tether’s influence may temper enthusiasm.
No independent analyst estimates on combined revenue potential or pro forma valuation were immediately available.