#BitcoinETFOptionLimitQuadruples

Galaxy Bilang XXI Owned by Jack Mallers Can Compete with MicroStrategy After Proposed Merger with Tether

Galaxy Research Head, Alex Thorn, stated that the merger plan between Twenty One Capital (XXI), Strike, and Elektron Energy will make XXI the second most influential publicly traded Bitcoin company after MicroStrategy.

Majority shareholder of XXI, Tether Investments, announced this week that they will support the company merger with Bitcoin financial services provider Strike, which will be followed by a merger with mining operator Elektron Energy.

Galaxy Positions XXI as the Closest Rival to MicroStrategy

XXI already owns 43,514 Bitcoin
BTCUSD
, making it the second-largest publicly traded Bitcoin holder after MicroStrategy.

Strike provides brokerage, custody, and loan services based on Bitcoin in over 100 countries. Meanwhile, Elektron Energy contributes approximately 50 EH/s of hash rate, about 5% of the Bitcoin network, with production costs reportedly below US$60,000 per coin.

In Galaxy Research’s weekly summary dated May 1, Thorn assessed that this combined entity will have something MicroStrategy does not.

“The combined XXI/Strike/Electron… has the potential to become the largest Bitcoin-only publicly traded company besides Strategy, and unlike Strategy, they will have significant operational cash flow alongside their treasury,” Thorn explained.

Regarding Related Parties and Swan Lawsuit Casting a Shadow Over the Deal

Galaxy highlighted governance issues. Jack Mallers serves as CEO of both XXI and Strike, while Tether holds the majority of shares in XXI and Elektron.

Thorn said that the board may need a special committee, fair value opinions, and majority voting from minority shareholders.

Elektron CEO, Raphael Zagury, recommended by Tether to become the president of the merged company, is currently a defendant in the Swan Bitcoin case in California and the UK.

Swan accuses Zagury and several former executives of colluding with Tether in 2024 to control a joint mining venture.

Tether revealed at Bitcoin 2026 that it now controls over 140,000 BTC, indicating that XXI could become the face of broader onshoring efforts registered in the US.