Shares of Twenty One Capital, a bitcoin-focused company, have risen by over 8% in after-hours trading on Wednesday, following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. Tether Investment, the independent investment arm of the stablecoin issuer, has announced its intention to vote in favor of combining Twenty One Capital with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy. As the CEO of Twenty One Capital, Mallers is poised to play a key role in the potential merger. The proposed deal would create a premier listed bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform.
No terms or timelines for the merger have been disclosed. Elektron Energy, led by Raphael Zagury, currently manages around 5% of the bitcoin network's computing power, with production costs below $60,000 per bitcoin. Tether has also suggested that Zagury serve as President of the combined entity, leveraging his experience in mining and capital markets to complement Mallers' expertise in product and consumer bitcoin services.
Following its public listing in December through a SPAC merger with Cantor Equity Partners, Twenty One Capital entered the market as a bitcoin treasury firm with 43,514 BTC, backed by Tether, Bitfinex, and Strike CEO Jack Mallers. The company initially focused on 'capital-efficient bitcoin accumulation,' but the proposed merger would expand its commitment to include other aspects of bitcoin services.
The combined transactions would enable Twenty One Capital to move beyond treasury exposure and establish a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.