Tether decided to merge three Bitcoin companies into one structure. The majority shareholder of Twenty One Capital proposed combining its Bitcoin treasury with payments platform Strike and miner Elektron Energy. If shareholders approve, the market gets the first public Bitcoin platform where accumulation, payments, and mining operate under one roof.
What Tether Proposed and Why
The proposal came on Wednesday, April 30. Tether is the majority shareholder of Twenty One Capital and immediately declared it would vote in favor. Without that support, the deal had no chance. With it, the merger looks all but decided before any formal vote.
The core problem is straightforward. Right now, Twenty One Capital depends entirely on the Bitcoin price. Shares dropped more than 10.5% since the start of 2026, tracking BTC. When the coin is flat or falling, the treasury earns nothing. The company has no revenue of its own.
The merger changes that. Strike brings in fees from payment operations. Elektron generates coins through mining. Both businesses have their own cash flows that do not hinge on the spot price of BTC on any given day.
Tether has not disclosed exact deal terms or a timeline. But the company already laid out a full management structure and assigned roles across three divisions. That level of preparation suggests talks started well before the public announcement.
Twenty One Capital: 43,514 BTC and the Second Spot
Twenty One Capital went public in December 2025 through a merger with Cantor Equity Partners. The portfolio started at 43,500 BTC. Today it holds 43,514 Bitcoin: a gain of just 14 coins over four months.
By comparison, Strategy holds 818,334 BTC and buys regularly in large tranches. XXI holds second place among public companies by Bitcoin on the balance sheet, but the gap between first and second is enormous.
XXI accumulation has been passive since the IPO. The Elektron merger offers an alternative: mine Bitcoin rather than buy it on the open market. Over time, that can lower the cost basis of adding BTC to the balance sheet.
Those watching BTC and considering buying Bitcoin with hryvnia see a broader signal in moves like this: the biggest players are building infrastructure, not just stacking coins.
XXI shares closed Wednesday at $7.83, down 1.7%. After hours they hit a high of $9.28 before settling at $8.35. The after-hours gain came to 6.6%.
Strike and Elektron: What Each Company Brings
Strike is a payment platform built on Lightning Network. Jack Mallers founded it and serves as CEO. The company holds licenses across multiple jurisdictions and has a wide partner network for Bitcoin payments. Tether described Strike's contribution as a "profitable financial services platform, global distribution and regulatory infrastructure." Mallers is also one of the most visible public advocates of the Bitcoin standard, which gives Strike brand recognition among retail users.
Elektron Energy runs Bitcoin mining at industrial scale. Raphael Zagury founded the company and is CEO. Tether described Elektron's contribution as "large-scale Bitcoin mining infrastructure, operational depth and proven execution capabilities." Zagury has built a track record in capital-intensive operational projects.
Together the three lines cover the full cycle. Elektron mines Bitcoin. XXI holds it on the balance sheet. Strike moves it between market participants and earns commissions. For a public company, that is rare vertical integration within a single asset class.
One more point: both partners already have real operating history. This is not a merger for the sake of a press release.
New Leadership: Mallers and Zagury in the Same Team
Tether proposed a clear split. Raphael Zagury would become president of the combined company. Jack Mallers would take an executive role, with the exact title still unannounced.
The logic holds. Mallers built Strike as a consumer Bitcoin brand and is well-known among enthusiasts and retail investors. Zagury has run large operational projects and has experience raising institutional capital. Two different profiles cover two different parts of the business.
Tether described the goal directly: combine Mallers' leadership in product, brand, and consumer Bitcoin with Zagury's experience in capital markets, operations, and execution.
In practice, one leads the audience and the product, the other manages the balance sheet and investor relations. A classic pairing for a company that mixes a technology product with complex financial markets. Neither Mallers nor Zagury has publicly confirmed the deal from their own side.
Vote, Timeline, and What It Means for BTC
The deal requires a shareholder vote at Twenty One Capital. Tether has stated its position. But minority shareholders and an independent board of directors also have a say, and no public statements have come from them. There is no timeline either.
If the merger closes, XXI stops being just a Bitcoin treasury. The company becomes a platform with three revenue streams: mining, Strike payment services, and BTC appreciation on the balance sheet.
For Tether, this is another way to put USDT profits to work inside Bitcoin infrastructure. The stablecoin issuer has been buying BTC and gold for years. Now it is building an operational layer around Bitcoin rather than just holding coins.
Large Bitcoin companies are moving in the same direction. Strategy buys. Metaplanet buys. Now Twenty One Capital wants to go further: combine buying, mining, and moving BTC inside one public structure. For the market, that is another sign that institutional Bitcoin is not a short-term trade but a long-term infrastructure project.
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