Tether-backed deal would make XXI MicroStrategy’s nearest rival
Tether Investments will vote to merge Twenty One Capital (XXI) with Strike and combine the result with Elektron Energy, a deal Galaxy Research says would put XXI at No. 2.
Tether Investments said it will vote to merge Twenty One Capital (XXI) with Bitcoin payments firm Strike and then combine the result with mining operator Elektron Energy. Galaxy Research flagged the proposal in a May 1 brief and wrote that the combined company would rank as the second most significant publicly traded Bitcoin company after MicroStrategy.
Under the proposal, XXI’s Bitcoin treasury would be paired with Strike’s retail and institutional services and Elektron’s mining capacity. XXI holds about 43,514 BTC, making it the second-largest public corporate holder behind MicroStrategy, according to Bitcoin Treasuries data. Tether disclosed at Bitcoin 2026 that it controls more than 140,000 BTC.
Strike operates brokerage, custody and Bitcoin-backed lending in more than 100 countries. Elektron reports roughly 50 exahashes per second of hashpower, about 5% of the Bitcoin network, and reportedly mines coins at costs below $60,000 each.
Galaxy Research’s Alex Thorn wrote that combining a large coin holding with operating cash flows from brokerage, custody and lending would change XXI’s profile. “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 wrote in the May 1 brief.
The transaction raises governance and related-party issues. Jack Mallers is CEO of both XXI and Strike, and Tether is the majority shareholder in XXI while holding controlling stakes in Elektron. Galaxy Research expects the XXI board will need a special committee, fairness opinions and a majority-of-the-minority shareholder vote to address those issues.
Tether has recommended Elektron CEO Raphael Zagury for the merged company’s president role. Zagury is a defendant in lawsuits filed by Swan Bitcoin in California and the U.K., which allege he and others conspired with Tether in 2024 to take control of a mining joint venture. Swan also filed an ex parte application in the Southern District of New York seeking permission to subpoena Cantor Fitzgerald and former CEO Howard Lutnick under 28 U.S.C. § 1782.
No timetable for shareholder votes or regulatory filings has been disclosed.
