Twenty One Capital's shares have risen by over 8% in after-hours trading on Wednesday, driven by a proposed merger with Strike and Elektron Energy, put forth by majority shareholder Tether Investments. According to a press release, Tether intends 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 would play a key role in the merged entity.
The proposed merger aims to create a premier listed bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. 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 suggested 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. Having gone public in December through a SPAC merger with Cantor Equity Partners, Twenty One Capital initially focused on 'capital-efficient bitcoin accumulation' with a treasury of 43,514 BTC, backed by Tether, Bitfinex, and Strike CEO Jack Mallers. The proposed merger would expand the company's commitment to bitcoin services beyond treasury exposure, creating a platform with operating businesses, recurring revenue streams, and enhanced bitcoin accumulation capabilities.