Tether Proposes Triple Merger to Create Public Bitcoin Platform

Tether Investments on Wednesday proposed a triple merger that would combine Twenty-One Capital, Strike and Elektron Energy into a single publicly traded company focused on Bitcoin treasury holdings, payments, lending and mining.

Twenty-One Capital would contribute a corporate Bitcoin treasury. The firm holds 43,514 BTC, worth about $3.3 billion at current prices, making it the second-largest public corporate holder of Bitcoin. Jack Mallers is chief executive of both Twenty-One and Strike.

Strike operates in more than 100 countries and provides services to buy, sell, hold, send and borrow against Bitcoin. Mallers this week said Strike has secured a $2.1 billion credit facility to meet lending demand.

Elektron Energy would add large-scale mining capacity. In a filing, Tether Investments said Elektron manages roughly 50 exahashes per second of hashing power, about 5% of the Bitcoin network, and has mined more than 5,500 BTC across its managed portfolio, with all-in production costs under $60,000 per coin.

Tether Investments, the investment arm of the stablecoin issuer Tether, described the proposed combined company as ‘the premier listed Bitcoin company in the world.’ The filing lays out a leadership plan pairing Mallers’ product and consumer experience with Raphael Zagury’s capital markets and operating background, and recommends Zagury serve as president of the combined entity.

Market reaction to the announcement was mixed. Shares of Twenty-One Capital (XXI) rose in after-hours trading following the proposal before trimming most gains; at one point XXI traded around $8.06, roughly 3% above Wednesday’s close. Twenty-One issued a press release late Wednesday acknowledging plans to potentially acquire Strike and Elektron Energy.

Twenty-One went public in December through a SPAC merger with Cantor Equity Partners. Tether was a prominent backer of that combination. Tether’s filings and investment activities span crypto services and infrastructure.

The proposal is subject to negotiation, regulatory review and shareholder approval. If completed, the transaction would unite a large corporate Bitcoin treasury, a global payments and lending platform, and significant mining capacity under one listed company.

At the Bitcoin 2026 conference in Las Vegas, Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, said the administration has spent months working through legal interpretations for a possible U.S. strategic Bitcoin reserve, while the Treasury has ruled out new Bitcoin purchases. Mallers described the idea as ‘Simply put, I think it’s a great idea.’