Shares of Twenty One Capital, a firm focused on bitcoin, have risen by over 8% in after-hours trading on Wednesday. This increase follows a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. Tether Investment, the investment arm of the stablecoin issuer, stated 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. Mallers serves as the CEO of Twenty One Capital.
According to a press release, the proposed merger would position Twenty One Capital to become the world's premier listed bitcoin company. The combined entity would offer an integrated platform that includes bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation. The terms and timeline of the merger have not 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 proposed that Zagury serve as President of the combined entity, leveraging his experience in mining and capital markets alongside Mallers' expertise in product and consumer bitcoin services.
Twenty One Capital went public in December through a SPAC merger with Cantor Equity Partners, entering the market as a bitcoin treasury firm with 43,514 BTC and backed by Tether, Bitfinex, and Strike CEO Jack Mallers. The company initially focused on "capital-efficient bitcoin accumulation" but would expand into other areas of bitcoin services if the merger takes place.
The combined transactions would enable Twenty One Capital to move beyond treasury exposure alone and establish a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.