Tether Plots Bitcoin Empire, Backs Mega Merger – What Users Gain From Deal

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Tether Investments has proposed a series of transactions to reinforce Twenty-One Capital (XXI), including its merger with two major companies: Strike and Elektron Energy.

Tether’s independent investment arm announced that this latest initiative aims to strengthen XXI’s structure, capital allocation, and long-term outlook. The key part of this plan is a potential merger of XXI with Bitcoin financial services company Strike, and then the merger of that combined entity with Bitcoin mining platform Elektron Energy.  This is a massive series of moves for everybody involved.

XXI went public in December 2025 as a Bitcoin treasury firm with 43,514 BTC, through a SPAC merger with Cantor Equity Partners. Its backers include Tether, Bitfinex, and Strike CEO Jack Mallers. Unsurprisingly, the shares posted a jump following the merger news, correcting lower soon after.

‘The Premier Listed Bitcoin Company In The World’

The announcement claims that the transactions would see the new, three-in-one entity leveraging “a strong balance sheet, a large-scale profitable operating business, and a financial services division built to spearhead Bitcoin adoption.”

It seems that Tether plans to create a powerful company, as the team writes:

“If completed, these transactions would position XXI to become the premier listed Bitcoin company in the world: a public company that combines Bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one integrated platform.  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.”

Each company would bring a key element to the table, they argue. Strike provides a profitable financial services platform, but also global distribution and regulatory infrastructure. On its end, Elektron provides an established, large-scale Bitcoin mining infrastructure with proven execution capabilities. All these factors are equally relevant for an entity to build a solid structure, the announcement suggests.

Notably, the discussion around this is currently ongoing, so there are no more details about timelines or transaction terms at the time of writing.

New Leadership On The Horizon?

Tether Investments recommends Raphael Zagury, Founder and CEO of Elektron, to serve as President. The company claims that this leadership structure would combine Zagury’s experience in capital markets, operations, and execution with Strike founder Jack Mallers’ brand and consumer Bitcoin leadership.

Mallers launched Strike in January 2020 as a Bitcoin Lightning-enabled payments application. It’s now a global and profitable platform, the press release says, that allows both individuals and businesses to buy, sell, hold, transact, and borrow against BTC.

Meanwhile, Zagury founded Elektron as a private Bitcoin mining operator. It manages some 50 EH/s across its platform, or about 5% of the current Bitcoin network.  Elektron says it has mined more than 5,500 BTC across its managed portfolio. At the same time, the current all-in BT production costs sit below $60,000 per coin, it says.

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