Twenty One Capital (XXI) stock jumped more than 6% in after-hours trading on Wednesday after majority shareholder Tether Investments proposed a three-way merger with Bitcoin payments firm Strike and Bitcoin miner Elektron Energy.
The stock had closed the regular session down 1.7% at $7.83, but climbed to a high of $9.28 after hours before settling at $8.35.
Tether said it intends to vote its XXI stake in favor of both deals. The first would combine XXI with Strike. The second would fold in Elektron Energy to create one integrated Bitcoin-focused public company.
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 has been under pressure this year. The stock is down more than 10.5% year-to-date, tracking a broader decline in Bitcoin prices.
The company currently holds 43,514 BTC, making it the second-largest Bitcoin holder among public companies. Only Strategy, Inc., which holds 818,334 BTC, ranks ahead of it.
Strike would contribute what Tether described as a profitable financial services platform, along with global distribution and regulatory infrastructure.
Elektron Energy would add large-scale Bitcoin mining operations. The firm manages roughly 5% of the current Bitcoin network’s total computing power, with all-in production costs reported below $60,000 per Bitcoin.
Together, the deal would bring Bitcoin treasury, mining, financial services, lending, and capital markets under one public company roof.
“The combined transactions would move XXI beyond treasury exposure alone and toward a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities,” Tether said in a statement.
Tether proposed Elektron founder and CEO Raphael Zagury as president of the combined entity.
Jack Mallers, who is both the founder and CEO of Strike and co-founder and CEO of XXI, would also hold an executive role in the merged company.
Tether described the pairing as combining “Mallers’ product, brand, and consumer Bitcoin leadership with Zagury’s capital markets, operating, and execution experience.”
No further details on the leadership structure were provided.
XXI went public in December through a SPAC merger with Cantor Equity Partners. It came to market backed by Tether, Bitfinex, and Mallers, with a stated goal of capital-efficient Bitcoin accumulation.
If the mergers are completed as proposed, that original mandate would expand well beyond simply holding Bitcoin on a balance sheet.
Tether did not disclose financial terms or a timeline for either transaction.
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