Galaxy Says Jack Mallers’ XXI Could Rival MicroStrategy After Tether’s Proposed Merger

Galaxy Research head Alex Thorn said the proposed merger of Twenty One Capital (XXI), Strike, and Elektron Energy would establish XXI as the second most influential Bitcoin public company behind MicroStrategy.

Tether Investments, XXI’s majority shareholder, said this week it will vote in favor of merging the company with Bitcoin financial services firm Strike, followed by a combination with mining operator Elektron Energy.

Galaxy Positions XXI as MicroStrategy’s Closest Rival

XXI already holds 43,514 Bitcoin (BTC), making it the second-largest public corporate Bitcoin holder behind MicroStrategy.

Top Public Companies Holding BTC. Source: Bitcoin Treasuries

Strike adds brokerage, custody, and Bitcoin-backed lending across more than 100 countries. Meanwhile, Elektron Energy contributes roughly 50 EH/s of hashrate, around 5% of the Bitcoin network, with production costs reportedly below $60,000 per coin.

In Galaxy Research’s May 1 weekly brief, Thorn argued the combined entity would have something MicroStrategy lacks.

“A combined XXI/Strike/Elektron… would arguably become the most strategically significant publicly traded Bitcoin-only company other than Strategy, and unlike Strategy it would have meaningful operating cash flows alongside its treasury,” Thorn explained.

Related-party ties and Swan litigation cloud the deal

Galaxy flagged governance hurdles. Jack Mallers serves as CEO of both XXI and Strike, while Tether owns majority stakes in both XXI and Elektron.

Thorn said the board will likely need a special committee, fairness opinions, and a majority-of-the-minority shareholder vote.

Elektron CEO Raphael Zagury, recommended by Tether to serve as president of the merged company, is a defendant in parallel Swan Bitcoin suits in California and the United Kingdom.

Swan alleges that Zagury and other former executives conspired with Tether in 2024 to expropriate a mining joint venture.

Tether disclosed at Bitcoin 2026 that it now controls more than 140,000 BTC, signaling that XXI may serve as the US-listed face of a broader onshoring effort.