TLDR
- Twenty One Capital is pursuing potential mergers with Strike and Elektron.
- Strike would add Bitcoin financial services across more than 100 countries.
- Elektron manages about 50 EH/s, or roughly 5% of the Bitcoin network.
- Tether Investments plans to support the proposed transactions.
- The strategy combines Bitcoin treasury, mining, lending and capital markets.
Twenty One Capital has outlined a consolidation strategy centered on potential acquisitions of Strike and Elektron Energy, aiming to combine Bitcoin treasury holdings, mining, financial services, lending, and capital markets under a single public company.
According to reports, Tether Investments intends to vote its shares in favor of a proposed merger between Twenty One and Strike, followed by a proposed combination with Elektron. The transactions remain subject to further details on terms, timing, governance, and assets included in the deal.
The plan would move Twenty One beyond a Bitcoin treasury model by adding operating businesses with revenue streams tied to financial services and mining infrastructure.
Twenty One Targets Bitcoin Financial Services
Strike would bring a Bitcoin financial services platform to Twenty One. The company, founded by Jack Mallers, offers products that allow users and businesses to buy, sell, hold, transact, and borrow against Bitcoin.
Strike operates in more than 100 countries and has built its business around Bitcoin payments, custody-related services, compliance systems, and retail and institutional distribution. Twenty One described financial services as the front door for future Bitcoin products.
The proposed structure would allow Twenty One to use Strike’s licenses, technology, brand, and customer base to expand Bitcoin-linked financial products. These could include lending, payments, custody, and capital markets services tied to Bitcoin.
Elektron Adds Large-Scale Bitcoin Mining
Elektron Energy would add mining infrastructure to the combined company. The platform manages about 50 exahash per second across its operations, equal to roughly 5% of the current Bitcoin network.
Elektron has mined more than 5,500 Bitcoin across its managed portfolio. The company is described as cash-flow positive, with current all-in Bitcoin production costs below $60,000 per coin.
Twenty One said native Bitcoin production would support its treasury strategy by feeding mined Bitcoin into the company’s balance sheet. Mining revenue could also support future financing and collateral strategies.
Tether Investments intends to recommend Elektron founder and CEO Raphael Zagury as president of the combined entity. The proposed leadership model would pair Mallers’ Bitcoin product and distribution experience with Zagury’s mining, capital markets, and operating background.
Capital Markets Strategy Centers on BTC
Twenty One said its broader strategy includes securitizing loan books, securitizing mining revenue, and using responsible leverage backed by its Bitcoin treasury. The company said operating cash flow would support non-dilutive financing where possible.
The model is designed to make Bitcoin accumulation the central use of operating income. The company said each dollar of operating income would be directed toward building the business and acquiring more Bitcoin.
The merger strategy also includes future acquisitions of Bitcoin-related businesses that could add cash flow to the platform. Twenty One said the goal is to compound operating income across treasury, mining, financial services, and capital markets.
If completed, the proposed transactions would create a listed Bitcoin company with exposure to multiple parts of the sector rather than treasury holdings alone. The combined platform would include Bitcoin production, customer-facing financial services, lending products, and institutional capital markets tools.
