Tether Proposes Merger with Strike to Reshape Bitcoin Ecosystem
The bitcoin treasury model faces a stress test as Tether bets consolidation can revive it, while MARA redraws the mining playbook by planting roots in Ohio's energy corridor. Across traditional finance, JPMorgan installs a settlement-layer architect at Kinexys, Meta rolls stablecoin payouts to creators, and earnings season finds Mastercard and Broadridge leaning hard into tokenization as a growth anchor, even as crypto-exposed equities absorbed a punishing session led by Robinhood's revenue miss. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.TETHER PUSHES XXI CONSOLIDATION:Tether Investments proposed that Twenty One Capital(XXI)merge with Strike and Elektron Energy, a bitcoin(BTC-USD)mining firm, in a move timed to the Bitcoin 2026 Conference in Las Vegas,Bloombergreported late Wednesday. The three-way combination would unite bitcoin treasury holdings, mining infrastructure, financial services, lending, and capital markets under a single listed company, according toa Tether press release. Tether named Jack Mallers, who already leads both Twenty One Capital and Strike, to head the combined entity, and proposed Elektron's Raphael Zagury as president, a pairing of mining and capital markets experience with consumer bitcoin product leadership. Elektron manages approximately 5% of the current Bitcoin network's computing power at all-in production costs below $60,000 per coin. Twenty One Capital shares climbed nearly 8% in after-hours trading on Wednesday.Twenty One Capital went public in December through a SPAC backed by Tether, Bitfinex, and SoftBank Group(SFTBY). Its shares had fallen 31% since the NYSE debut, underperforming bitcoin's own 18% decline over the same period. The merger pitch reflects the limits of the pure-treasury playbook popularized by Strategy(MSTR), adding operating businesses with recurring revenue to rebut the criticism that treasury vehicles offer nothing a direct bitcoin purchase cannot. The more immediate equity read-through centers on index inclusion timing and whether a larger, operationally richer vehicle compresses or widens the NAV premium relative to Strategy.MARA SECURES OHIO ENERGY CAMPUS:MARA Holdings(MARA)signed a definitive agreement to acquire Long Ridge Energy and Power LLC from FTAI Infrastructure(FIP)for a total transaction value of approximately $1.52B, including roughly $1.16B of assumed debt, pera company press release. The asset includes a 485 MW combined-cycle natural gas plant in Hannibal, Ohio, on approximately 1,600 acres along the Ohio River, with full campus capacity projected to exceed one gigawatt after additional buildout. The deal requires FERC and Hart-Scott-Rodino clearance and is targeted to close in Q3 2026.The acquisition marks a structural break from an asset-light bitcoin accumulation model toward vertical integration of energy and compute. Owning dispatchable gas generation removes MARA's single largest operating cost variable while the riverside acreage creates room for co-located AI and high-performance computing alongside mining, a combination that could attract long-term offtake contracts from data center tenants. A rerate of the asset base away from a pure bitcoin treasury discount framework may follow if management secures such revenue.JPMORGAN APPOINTS KINEXYS CHIEF:JPMorgan Chase(JPM)hired Oliver Harris, a former Goldman Sachs(GS)digital asset executive who later founded real-estate tokenization startup Arda, to lead its Kinexys blockchain division as the bank deepens its digital asset strategy,CoinDeskreported Wednesday. Harris has argued that tokenizing assets alone does not create liquidity and that deeper structural change requires a global settlement layer merging money, assets, and data on a single blockchain platform. He described Kinexys's purpose as building the foundation of the next era of market structure and said that technology and regulation are now mature enough for institutions to move beyond isolated blockchain experiments toward overhauling core clearing and settlement infrastructure. This evolution comes despite CEO Jamie Dimon, head of one of the world's largest financial institutions, having previously dismissed crypto as having "no intrinsic value."META LAUNCHES STABLECOIN PAYOUTS:Meta Platforms(META)has begun rolling out USD Coin(USDC-USD)payouts to select creators in Colombia and the Philippines, allowing eligible users to link a wallet and receive earnings on the Solana(SOL-USD)or Polygon networks,. The program is supported by Stripe, which will handle crypto tax reporting for users. The initiative marks Meta's return to stablecoin payments after its Libra project was shuttered in 2022 and, with more than 3B users across its platforms, positions Meta's adoption of blockchain payment rails as a meaningful proof-of-concept for stablecoin disbursements at consumer scale.TOKENIZATION IN TRADITIONAL FINANCE:Mastercard(MA)reported Q1 net revenue of $8.4B, up 16% year-over-year, per itsearnings release, and called out the planned acquisition of stablecoin infrastructure firm BVNK as the primary vehicle for digital payments expansion. Broadridge Financial Solutions(BR)posted Q3 recurring revenue up 7% and adjusted EPS of $2.72, up 11%, raised full-year guidance, and cited tokenization of financial assets as a core forward growth driver, per itsfiling. Treasury management startup Stable Sea integrated WisdomTree's(WT)tokenized U.S. Government Money Market Digital Fund, which carries $857.64M in assets and a 3.43% daily yield, into its corporate cash management platform, perCointelegraph.PRICE ACTION:As of time of writing, bitcoin was trading at $76,350.48, while ether was trading at$2,262.96,according to price data from TipRanks.
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Securitize Set to Go Public on NYSE Amid Strong Investor Support
- Funding Expectations: Securitize anticipates raising approximately $400 million through its merger with Cantor Equity Partners II, reflecting strong market confidence in its tokenization platform, especially as fewer than 30% of SPAC shareholders opted to redeem, leaving 71.5% of the trust intact.
- Tokenization Market Leader: As the largest real-world asset tokenization platform, Securitize manages over $4 billion in assets and serves as the tokenization platform for BlackRock's BUIDL fund, marking a significant milestone in the mainstream adoption of tokenization in institutional investing.
- Expansion of Cantor's Crypto Transactions: This transaction further solidifies Cantor Fitzgerald's role as a pipeline for crypto-linked companies entering public markets, showcasing its enduring influence over the past four decades, particularly after Howard Lutnick stepped down and control shifted to his sons.
- Shareholder Vote and Market Reaction: CEPT shareholders are scheduled to vote on the merger on June 29, with the deal expected to close on July 1, and CEPT's stock rose over 7% last Friday, indicating optimistic market sentiment, as retail investor sentiment shifted from neutral to bullish.
Michael Saylor Calls for Bitcoin Unity Amid Treasury Debate
- Call for Bitcoin Unity: Michael Saylor urged Bitcoin advocates to focus on the '99% that matters' on social media, emphasizing that global capital has yet to fully enter Bitcoin's network, indicating significant market potential despite ongoing internal debates.
- STRC Stock Pressure: Strategy Inc's STRC preferred shares fell to $88, below the $100 par value, forcing the company to pause at-the-market sales, highlighting the pressure on its financing tools that may impact future funding strategies.
- Perpetual Preferred Equity Debate: Jack Mallers of Twenty One Capital argued that companies issuing perpetual preferred equity are effectively 'signing up to owe money forever,' which could lead to liquidity issues and affect long-term financial health.
- Market Sentiment Analysis: Despite MSTR stock closing down over 3%, retail sentiment on Stocktwits remains in the 'bullish' zone, indicating that investor confidence in the company's future persists, even amid challenges.
Mallers Critiques Perpetual Preferred Equity Model
- Perpetual Preferred Risk: Twenty One Capital CEO Jack Mallers stated that companies issuing perpetual preferred equity are essentially 'signing up to owe money forever', contrasting this with convertible bonds that can be retired through equity conversion, thereby alleviating financial burdens.
- Capital Structure Impact: Mallers emphasized that new perpetual preferreds like the Variable Rate Series A Perpetual Stretch Preferred Stock are non-callable and do not convert to equity, meaning companies will bear an interest burden of approximately 11.5% indefinitely, which could negatively impact their capital structure in the long term.
- Financial Engineering Challenges: Mallers outlined four options for Bitcoin treasury businesses facing underwater positions: selling Bitcoin, issuing dilutive common stock, discontinuing preferred dividends, or finding alternative cash flows to fund perpetual coupons, noting that each option adversely affects at least one stakeholder group.
- Cash Flow Alternatives: Mallers expressed a preference for generating cash flow through Strike's Bitcoin-backed loan business, which has a current addressable market of $20 billion to $30 billion and a long-term potential of $1 trillion to $2 trillion, indicating a strategic exploration of new business models.
Strategy's Bitcoin Treasury Model Faces Pressure Amid Market Downturn
- Stock Price Plunge: Strategy's stock experienced a 24% drop in a week amid a crypto sell-off, marking its worst performance since November 2022, indicating the vulnerability of its bitcoin treasury model under sustained pressure, which could impact its ability to attract new capital.
- Market Reaction: Bitcoin has fallen 50% since its peak in October, with predictions of a drop to $40,000, and Strategy's stock performance reflects not only bitcoin's price but also challenges in maintaining its valuation premium, leading investors to adopt a cautious outlook on its future.
- Increased Industry Competition: Since 2024, numerous bitcoin treasury companies have emerged mimicking Strategy's model, making Strategy not only the largest bitcoin holder but also a template for the industry, complicating its competitive position in the market.
- Shift in Financing Strategy: Strategy has evolved from being a mere bitcoin hoarder to a more active manager, planning to sell bitcoin when advantageous, demonstrating its ability to adapt to market volatility and potentially create long-term value for shareholders.
Twenty One Capital Appoints Independent Director to Audit Committee
- Board Independence Restored: Twenty One Capital has appointed Paul S. Lalljie as an independent director and audit committee member, ensuring compliance with SEC and NYSE independence requirements, thereby enhancing corporate governance and boosting investor confidence.
- Rich Management Experience: Lalljie brings extensive expertise in finance, technology, and education technology, having served as CEO and CFO of 2U, which is expected to provide strategic financial management and audit leadership to support the company's future growth.
- Governance Structure Adjustment: This appointment addresses the vacancy left by SoftBank representatives on the board, ensuring the integrity of the audit committee and reflecting the company's commitment to transparency and compliance, which is crucial for building market trust.
- Bitcoin Strategy Focus: Twenty One Capital holds over 43,500 bitcoins and aims to integrate Bitcoin treasury, financial services, mining, and capital markets into a single platform designed for long-term Bitcoin accumulation and sustainable revenue, enhancing its competitive position in the market.
Tether Acquires SoftBank's Stake in XXI, Strengthening Control
- Acquisition of Control: Tether International announced the buyout of SoftBank's entire stake in Twenty One Capital (XXI), marking a significant consolidation of control that is expected to enhance the company's strategic position in the Bitcoin market.
- Board Restructuring: As required by the shareholder agreement, SoftBank's representatives on the XXI Board have resigned, allowing Tether to exert more direct influence over the company's decision-making and future direction.
- Positive Market Reaction: Following Tether's announcement, XXI's stock price rose over 2% in pre-market trading, reaching $8.07, indicating a positive market response and reflecting investor confidence in the company's future.
- Retail Sentiment Shift: On Stocktwits, retail sentiment around XXI shifted from 'neutral' to 'bullish', suggesting an increasing optimism among investors regarding the company's prospects, which may attract more investor attention.
Securitize Set to Go Public on NYSE Amid Strong Investor Support
- Funding Expectations: Securitize anticipates raising approximately $400 million through its merger with Cantor Equity Partners II, reflecting strong market confidence in its tokenization platform, especially as fewer than 30% of SPAC shareholders opted to redeem, leaving 71.5% of the trust intact.
- Tokenization Market Leader: As the largest real-world asset tokenization platform, Securitize manages over $4 billion in assets and serves as the tokenization platform for BlackRock's BUIDL fund, marking a significant milestone in the mainstream adoption of tokenization in institutional investing.
- Expansion of Cantor's Crypto Transactions: This transaction further solidifies Cantor Fitzgerald's role as a pipeline for crypto-linked companies entering public markets, showcasing its enduring influence over the past four decades, particularly after Howard Lutnick stepped down and control shifted to his sons.
- Shareholder Vote and Market Reaction: CEPT shareholders are scheduled to vote on the merger on June 29, with the deal expected to close on July 1, and CEPT's stock rose over 7% last Friday, indicating optimistic market sentiment, as retail investor sentiment shifted from neutral to bullish.
Michael Saylor Calls for Bitcoin Unity Amid Treasury Debate
- Call for Bitcoin Unity: Michael Saylor urged Bitcoin advocates to focus on the '99% that matters' on social media, emphasizing that global capital has yet to fully enter Bitcoin's network, indicating significant market potential despite ongoing internal debates.
- STRC Stock Pressure: Strategy Inc's STRC preferred shares fell to $88, below the $100 par value, forcing the company to pause at-the-market sales, highlighting the pressure on its financing tools that may impact future funding strategies.
- Perpetual Preferred Equity Debate: Jack Mallers of Twenty One Capital argued that companies issuing perpetual preferred equity are effectively 'signing up to owe money forever,' which could lead to liquidity issues and affect long-term financial health.
- Market Sentiment Analysis: Despite MSTR stock closing down over 3%, retail sentiment on Stocktwits remains in the 'bullish' zone, indicating that investor confidence in the company's future persists, even amid challenges.
Mallers Critiques Perpetual Preferred Equity Model
- Perpetual Preferred Risk: Twenty One Capital CEO Jack Mallers stated that companies issuing perpetual preferred equity are essentially 'signing up to owe money forever', contrasting this with convertible bonds that can be retired through equity conversion, thereby alleviating financial burdens.
- Capital Structure Impact: Mallers emphasized that new perpetual preferreds like the Variable Rate Series A Perpetual Stretch Preferred Stock are non-callable and do not convert to equity, meaning companies will bear an interest burden of approximately 11.5% indefinitely, which could negatively impact their capital structure in the long term.
- Financial Engineering Challenges: Mallers outlined four options for Bitcoin treasury businesses facing underwater positions: selling Bitcoin, issuing dilutive common stock, discontinuing preferred dividends, or finding alternative cash flows to fund perpetual coupons, noting that each option adversely affects at least one stakeholder group.
- Cash Flow Alternatives: Mallers expressed a preference for generating cash flow through Strike's Bitcoin-backed loan business, which has a current addressable market of $20 billion to $30 billion and a long-term potential of $1 trillion to $2 trillion, indicating a strategic exploration of new business models.
Strategy's Bitcoin Treasury Model Faces Pressure Amid Market Downturn
- Stock Price Plunge: Strategy's stock experienced a 24% drop in a week amid a crypto sell-off, marking its worst performance since November 2022, indicating the vulnerability of its bitcoin treasury model under sustained pressure, which could impact its ability to attract new capital.
- Market Reaction: Bitcoin has fallen 50% since its peak in October, with predictions of a drop to $40,000, and Strategy's stock performance reflects not only bitcoin's price but also challenges in maintaining its valuation premium, leading investors to adopt a cautious outlook on its future.
- Increased Industry Competition: Since 2024, numerous bitcoin treasury companies have emerged mimicking Strategy's model, making Strategy not only the largest bitcoin holder but also a template for the industry, complicating its competitive position in the market.
- Shift in Financing Strategy: Strategy has evolved from being a mere bitcoin hoarder to a more active manager, planning to sell bitcoin when advantageous, demonstrating its ability to adapt to market volatility and potentially create long-term value for shareholders.
Twenty One Capital Appoints Independent Director to Audit Committee
- Board Independence Restored: Twenty One Capital has appointed Paul S. Lalljie as an independent director and audit committee member, ensuring compliance with SEC and NYSE independence requirements, thereby enhancing corporate governance and boosting investor confidence.
- Rich Management Experience: Lalljie brings extensive expertise in finance, technology, and education technology, having served as CEO and CFO of 2U, which is expected to provide strategic financial management and audit leadership to support the company's future growth.
- Governance Structure Adjustment: This appointment addresses the vacancy left by SoftBank representatives on the board, ensuring the integrity of the audit committee and reflecting the company's commitment to transparency and compliance, which is crucial for building market trust.
- Bitcoin Strategy Focus: Twenty One Capital holds over 43,500 bitcoins and aims to integrate Bitcoin treasury, financial services, mining, and capital markets into a single platform designed for long-term Bitcoin accumulation and sustainable revenue, enhancing its competitive position in the market.
Tether Acquires SoftBank's Stake in XXI, Strengthening Control
- Acquisition of Control: Tether International announced the buyout of SoftBank's entire stake in Twenty One Capital (XXI), marking a significant consolidation of control that is expected to enhance the company's strategic position in the Bitcoin market.
- Board Restructuring: As required by the shareholder agreement, SoftBank's representatives on the XXI Board have resigned, allowing Tether to exert more direct influence over the company's decision-making and future direction.
- Positive Market Reaction: Following Tether's announcement, XXI's stock price rose over 2% in pre-market trading, reaching $8.07, indicating a positive market response and reflecting investor confidence in the company's future.
- Retail Sentiment Shift: On Stocktwits, retail sentiment around XXI shifted from 'neutral' to 'bullish', suggesting an increasing optimism among investors regarding the company's prospects, which may attract more investor attention.
