Tether's investment division proposes a merger of three firms to create a leading entity in the Bitcoin industry, enhancing operational capabilities.
Tether's investment arm has unveiled a proposal to merge three companies in an effort to establish a dominant public entity within the Bitcoin sector.
The merger involves Twenty-One Capital (XXI), the financial services provider Strike, and the mining platform Elektron Energy. The newly formed organization aims to manage treasury reserves in Bitcoin, engage in cryptocurrency mining, and provide lending services.
Strike is set to offer its financial platform, global distribution, and regulatory framework, while Elektron will contribute its Bitcoin mining capabilities and operational know-how. Elektron currently operates a hash rate of approximately 50 EH/s, representing about 5% of the total Bitcoin network hash rate, and has successfully mined over 5,500 BTC.
Tether has proposed that Rafael Zaguri, CEO of Elektron, take the helm as president of the merged entity. Zaguri will oversee capital markets and operations, while Jack Mallers, founder of Strike, will concentrate on product development and brand strategy.
This merger is intended to transition XXI from simply holding Bitcoin to becoming a fully operational platform with consistent revenue streams and avenues for cryptocurrency growth. Further details regarding the merger will emerge as discussions advance.
Currently, XXI ranks second among public companies in Bitcoin reserves, boasting 43,514 BTC valued at around $3.3 billion, trailing only Strategy, which holds 818,334 BTC. It surpasses Japan's Metaplanet and MARA Holdings in terms of Bitcoin holdings.
Institutional interest in Bitcoin assets is further evidenced by the recent actions of government entities. The Canadian sovereign fund AIMCo, managing $142 billion in assets, disclosed its acquisition of 1.38 million shares of Strategy for $219 million, marking its first direct investment in Bitcoin-related instruments.
In April, Tether also partnered with Canaan and ACME Swisstech to launch a modular infrastructure for mining.
