Key Takeaways:
- Tether Investments proposed a merger between XXI and Jack Mallers’ Strike on April 29, 2026.
- The deal integrates Elektron Energy’s 50 EH/s mining fleet to capture 5% of the global Bitcoin network.
- Raphael Zagury would lead the new XXI entity to expand bitcoin accumulation strategies and financial services.
Tether Backs Strike and Elektron Integration to Reshape XXI Capital
The El Salvador-based investment arm of Tether, the world’s largest digital asset company, intends to vote its shares in favor of combining XXI with Jack Mallers‘ Strike. The proposal further seeks to merge that combined entity with Elektron Energy, a massive private bitcoin mining platform. If the deal closes, it would unite a global financial services brand with large-scale infrastructure.
Strike has established itself as a dominant player in the bitcoin industry, offering services to buy, sell, and borrow against BTC in over 100 countries. Under the leadership of Mallers, the company has remained profitable while building out regulatory infrastructure. The merger would provide XXI with a steady stream of recurring revenue and a global distribution network.
On the infrastructure side, Elektron Energy brings significant industrial weight to the table. Led by Raphael Zagury, Elektron manages approximately 50 exahash per second (EH/s), which accounts for roughly 5% of the total Bitcoin network hashpower. The mining firm has successfully produced more than 5,500 bitcoins with an all-in production cost currently sitting below $60,000 per coin.
Tether Investments recommended that Zagury serve as the president of the newly formed entity. The leadership structure aims to pair Mallers’ consumer brand expertise with Zagury’s background in capital markets and large-scale operations. This combination is designed to drive disciplined capital allocation as the firm expands its footprint.
The proposed transactions would shift XXI from a simple treasury exposure vehicle into a comprehensive bitcoin platform. The new structure would encompass mining, lending, capital markets, and financial services. Proponents of the deal believe this integration will create the world’s premier publicly listed bitcoin company.
By absorbing Elektron’s 50 EH/s capacity, the combined entity would possess one of the most efficient cost structures in the mining sector. This operational depth is intended to fuel long-term bitcoin accumulation even during volatile market cycles. Tether Investments emphasized that Elektron’s team has a proven track record of executing infrastructure projects across various economic environments.
Tether Investments functions as an independent arm, deploying capital from Tether’s profits into technology and infrastructure. The move signals a deeper commitment to the bitcoin ecosystem in the United States and global markets. The firm believes the merger will accelerate XXI’s strategic direction and drive long-term value for shareholders.
Specific details regarding the transaction terms and governance remain under discussion. Further updates on timelines and asset scope are expected as the parties move toward final agreements. For now, the market is watching how this consolidation of financial services and mining will impact the broader digital asset landscape.
As the industry matures, the trend toward vertical integration continues to gain momentum. The proposed merger between XXI, Strike, and Elektron represents a significant step in that direction. If successful, the new XXI would represent a diversified bet on the future of the decentralized web.
