Tether Proposes Three-Way Merger of Twenty One Capital, Strike, and Elektron Energy

Tether Investments, the majority shareholder of NYSE-listed Twenty One Capital, has proposed a three-way merger combining Twenty One Capital with bitcoin payments company Strike and mining firm Elektron Energy. The deal would install Strike founder Jack Mallers as CEO and Elektron's Raphael Zagury as President of the combined entity. Twenty One Capital, which went public in December 2025 through a SPAC merger with 43,514 BTC, would expand beyond its treasury focus to include mining operations controlling 5% of Bitcoin's network hashrate, financial services, and lending. Shares jumped over 8% in after-hours trading on the announcement, though no terms or timelines were disclosed.

Tether's Proposed Three-Way Merger Structure

• ▪Tether Investments intends to vote its shares in favor of combining Twenty One Capital with Strike and Elektron Energy
• ▪No terms or timelines were disclosed for the merger of Twenty One Capital, Strike, and Elektron Energy
• ▪Tether Investments is the majority shareholder of Twenty One Capital
• ▪Strike is a global bitcoin financial services company founded by Jack Mallers
• ▪Tether Investment is the independent investment arm of the stablecoin issuer Tether
• ▪Tether proposed that Raphael Zagury serve as President of the combined entity resulting from the Twenty One Capital, Strike, and Elektron Energy merger
• ▪Tether Investments proposed a merger combining Twenty One Capital (XXI), Strike, and Elektron Energy

Strategic Positioning and Operational Capabilities

• ▪Elektron Energy has all-in production costs below $60,000 per bitcoin
• ▪Raphael Zagury leads Elektron Energy, which manages approximately 5% of the current bitcoin network's computing power

Twenty One Capital's Market Performance and Background

• ▪Twenty One Capital shares were up over 8% in after-hours trading on Wednesday, April 29, 2026
• ▪Twenty One Capital went public in December 2025 through a SPAC merger with Cantor Equity Partners
• ▪Twenty One Capital is backed by Tether, Bitfinex, and Strike CEO Jack Mallers
• ▪Twenty One Capital entered the market as a bitcoin treasury firm with 43,514 BTC

Perspective of Elektron Energy

• ▪Elektron Energy contributes approximately 5% of the current bitcoin network's computing power to the proposed merger
• ▪Elektron Energy's all-in production costs below $60,000 per bitcoin provide cost-efficient Bitcoin accumulation capabilities to the merged entity