Tether is pushing Twenty One Capital deeper into the Bitcoin mining space through a proposed merger with Strike and Elektron Energy.
Stablecoin issuing giant Tether is trying to turn the second-large public Bitcoin treasury firm Twenty One Capital into more than another public company sitting on a pile of BTC▼$65,733.00.
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In an April 29 press release, Tether Investments, the stablecoin issuer’s investment arm, said it plans to vote its shares in favor of a proposed merger between Twenty One Capital and Strike, a Bitcoin financial services company.
It also said it supports a proposed merger of the combined company with Elektron Energy, a Bitcoin mining platform.
From Bitcoin Treasury to Bitcoin Mining Business
Twenty One Capital, backed by Tether, Bitfinex and SoftBank, already sits near the top of the public Bitcoin treasury table. BitcoinTreasuries ranks the company second among public companies with 43,514 BTC, behind Strategy’s 818,334 BTC and ahead of Metaplanet’s 40,177 BTC.
Tether said the transactions would let the combined entity use “a strong balance sheet, a large-scale profitable operating business, and a financial services division built to spearhead Bitcoin adoption.”
Amid the news, Twenty One Capital shares rose 6.6% in pre-market trading to about $8.2, per Yahoo Finance data.
- Founded by Jack Mallers, one of the more recognizable Bitcoin-only entrepreneurs and the public face behind Strike, the company lets users and businesses buy, sell, hold, send and borrow against Bitcoin.
What is Elektron
According to the announcement, Elektron manages about 50 EH/s across its platform, representing roughly 5% of the current Bitcoin network.
The announcement also said Elektron has mined more than 5,500 BTC across its managed portfolio. Tether described it as a profitable and cash-flow-positive platform with “current all-in Bitcoin production costs below $60,000 per bitcoin.”
Given that Bitcoin is trading in the mid-$75,000 area, Tether appears to be pitching Elektron as a mining business that can produce BTC below the market price. Tether also said it plans to recommend Elektron founder and CEO Raphael Zagury as president of the combined company.
But the plan is still not final. Tether said further details on transaction terms, timelines, governance and the assets included in the merger “will be provided as discussions progress.”
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