Galaxy Says Jack Mallers’ XXI Could Rival MicroStrategy After Tether’s Proposed Merger
Galaxy Research head Alex Thorn stated the proposed merger of Twenty One Capital (XXI), Strike, and Elektron Energy would set up XXI because the second most influential Bitcoin public firm behind MicroStrategy.
Tether Investments, XXI’s majority shareholder, stated this week it’ll vote in favor of merging the corporate with Bitcoin monetary companies agency Strike, adopted by a mixture with mining operator Elektron Energy.
Galaxy Positions XXI as MicroStrategy’s Closest Rival
XXI already holds 43,514 Bitcoin (BTC), making it the second-largest public company Bitcoin holder behind MicroStrategy.
Strike provides brokerage, custody, and Bitcoin-backed lending throughout greater than 100 international locations. Meanwhile, Elektron Energy contributes roughly 50 EH/s of hashrate, round 5% of the Bitcoin community, with manufacturing prices reportedly under $60,000 per coin.
In Galaxy Research’s May 1 weekly transient, Thorn argued the mixed entity would have one thing MicroStrategy lacks.
“A mixed XXI/Strike/Elektron… would arguably change into essentially the most strategically vital publicly traded Bitcoin-only firm apart from Strategy, and in contrast to Strategy it might have significant working money flows alongside its treasury,” Thorn explained.
Related-party ties and Swan litigation cloud the deal
Galaxy flagged governance hurdles. Jack Mallers serves as CEO of both XXI and Strike, whereas Tether owns majority stakes in each XXI and Elektron.
Thorn stated the board will probably want a particular committee, equity opinions, and a majority-of-the-minority shareholder vote.
Elektron CEO Raphael Zagury, advisable by Tether to function president of the merged firm, is a defendant in parallel Swan Bitcoin fits in California and the United Kingdom.
Swan alleges that Zagury and different former executives conspired with Tether in 2024 to expropriate a mining three way partnership.
Tether disclosed at Bitcoin 2026 that it now controls greater than 140,000 BTC, signaling that XXI could function the US-listed face of a broader onshoring effort.
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