Nakamoto merged with Bitcoin Magazine and the conference and all that but it seems we aren't done with the collateral damage from the treasury company fad.
As part of this initiative, Tether Investments intends to vote its shares in favor of a proposed merger between XXI and Strike, a leading Bitcoin financial services company, and a proposed merger of the combined entities with Elektron Energy, a large-scale Bitcoin mining platform.
So, Tether is pushing to merge XXI with Strike and Electron (which was the mining company that came out of Swan and Tether's failed mining experiment -- still a story I need to dig into).
What will be the next cool Bitcoin company gobbled up by the treasury beasts run amok?
Is Stacker News in any danger of being incorporated into Stack (STAK), the London-based treasure company?
haaahahahahahahahahahahaha
clearly!
Should be. I've heard it's a profitable, sats-native endeavor!
As a share holder in both XXI and strike I have no issues with this. I expected it to happen.
Maybe this explains why Bitcoin backed loans were turned off for me.
~Stacker_Stocks
I will also add them having miners allows them to mine their own transactions!
I'm trying to come up with one, but drawing a blank: Is there any material advantage to this?
By "share holder in strike", do you mean customer? I thought strike was a private company, but maybe i'm super confused.
Through Lightning Ventures on Angels List I bought shares during one of their funding rounds long ago. Once this deal with XXI is complete I am sure early strike investors will either get cash or XXI stock
Ah that makes sense. I guess there isn't an active market for those shares or any way to know how they performed up until now?
Yea Private equity
Besides tether's greasy fingers being involved, I dont really see the issue here. As far as I know strike is a profitably run private company that bitcoiners sorta like(as much as anyone can like a KYC exchange). I can understand some people's dislike for the leveraged bitcoin exposure only companies, but the merger with XXI would essentially result in the same company strike, but with a lump of capital behind it. If I recall correctly, that was sorta Jack's goal for XXI, not to make it into leveraged bitcoin equity. Saylor recomended he merge with strike a while ago.
The only real problem I can see is that in certain cases, private companies do a better job at keeping their customers happy, rather than focusing on shareholders, big example being Valve.
Not a fan of the mining company addition though, thats a rough industry.
I agree though industry indeed specially in a down turn like the one we find ourselves in and that’s why I think the mining portion of the acquisition is pretty much a bailout. Other than that, I also agree, it makes sense for Strike and XXI to merge.
aaaah man, Mr. Scoresby beat me to the breaking-SN-breaking news by likeeee... a day. Sucks to be me.
I mean, I got nothing to say about this... except it was the world's most predictable event!
It feels like we’re watching the Standard Oil of the Bitcoin space being built in real-time.
While it's cool to see a company with Tether's war chest go all in on the ecosystem, the centralization of 5% of the hashrate and a major global wallet under one investment arm is going to raise some eyebrows regarding the decentralized ethos.
how?
It might be @standard_sats but well, we are sorry
Missed out on the pun, @standard_sats it is
IIRC @Car called that XXI would acquire Strike which was not on my bingo card radar. It seemed so nepo that it didn't occur to me until he said it.
I'm waiting for the Metaplanet merges with mt gox (just the brand) and brings karpeles on as their front man.
I don't have time at the moment to read this ... but ya -- seems like the acquisition was an eventuality.
https://xcancel.com/r00ts21/status/2016637284867584273
I was confused by the phrase but now it all makes sense.
Wondering how long after the acquisition finalizes before my USDs on Strike become USATs.
I have zero doubt than when XXI was a blank check company it was designed to acquire strike, Jack even talked about acquisitions
Bitcoin SPAC basically
Ryan Gentry has an acquisition company too... LL next?
Im sure that Saylor is comfortable with his position but he'll be watching the rear view mirror to keep an eye on these kids
This could be the setting of the scene in regards to takeovers and acquisitions in the paper Bitcoin world
Jack is fiat stock exchange royalty and involved with cantor fitz, tether on the scene
The big ETF providers will be sizing each other up
The government will be keeping tabs on everyone
If this paper sat snowball starts to gather momentum, will be interesting to see who becomes top dog
The consolidation impulse here is understandable but the strategic logic is strange. Twenty One is trying to be a BTC treasury company. Tether is the largest USD stablecoin issuer. Strike is a payment company. Elektron appears to be a hardware play.
These are not synergistic. A treasury company needs a clean, simple thesis: we hold BTC, our shares are a BTC proxy. Adding stablecoin issuance and payment processing muddles that thesis. The market will discount the BTC NAV because investors won't know whether management is making disciplined hold decisions or making operating company decisions.
The Nakamoto/Bitcoin Magazine consolidation at least had logic: combine the BTC treasury with the content/community platform to create demand for the stock via brand visibility.
This feels like consolidation for deal-making momentum rather than a coherent product strategy. Who is the target customer? Someone who wants BTC exposure, access to Tether's stablecoin, payment rails, and hardware -- all from one entity? That person does not exist.