Tether, the majority shareholder of Bitcoin treasury company Twenty One Capital, has proposed a three-way merger that would combine the firm with Bitcoin payments company Strike and Bitcoin mining operator Elektron Energy, in a move designed to transform the publicly listed vehicle into a vertically integrated Bitcoin platform.

A Platform Beyond Treasury Holdings

Tether said on Wednesday that it intends to vote in favour of a proposed merger between Twenty One Capital and Strike, followed by a subsequent merger of the combined company with Elektron Energy. The stablecoin issuer framed the proposal as a strategic step to move Twenty One Capital beyond pure treasury exposure and toward a platform with operating businesses, recurring revenue opportunities and long-term Bitcoin accumulation capabilities.

"Strike would be contributing a profitable financial services platform, global distribution and regulatory infrastructure," Tether said in a statement. "Elektron would be adding large-scale Bitcoin mining infrastructure, operational depth and proven execution capabilities."

Shares Surge After Hours on Merger News

Shares in Twenty One Capital (NYSE: XXI) ended Wednesday's regular session down 1.7% at $7.83, but climbed sharply in after-hours trading, reaching a high of $9.28 before settling at $8.35, a gain of 6.6% after the bell. The company's share price has declined more than 10.5% year to date, tracking Bitcoin's broader retreat.

Twenty One Capital currently holds 43,514 Bitcoin, making it the second-largest public company Bitcoin holder behind Strategy, Inc., which holds 818,334 Bitcoin. The company went public in December through a merger with Cantor Equity Partners.

Leadership Structure Pairs Mallers With Zagury

Tether proposed that Elektron founder and chief executive Raphael Zagury serve as president of the combined company, with Jack Mallers, the founder and chief executive of Strike and co-founder and chief executive of Twenty One Capital, also serving in an executive role.

"The proposed leadership structure is intended to combine Mallers' product, brand, and consumer Bitcoin leadership with Zagury's capital markets, operating, and execution experience," Tether said.

Terms and Timeline Not Yet Disclosed

Tether did not disclose the financial terms of the proposed mergers or a timeline for their completion. The announcement represents a proposal rather than a binding agreement, and the transactions would be subject to shareholder approval and regulatory review.

The proposal reflects a broader trend among Bitcoin-focused public companies to expand beyond passive treasury accumulation and build operational infrastructure around the asset. If completed, the combined entity would bring together a consumer-facing payments network, large-scale mining capacity and a substantial Bitcoin treasury under a single corporate structure.