Shares of Twenty One Capital, a bitcoin-focused company, have risen over 8% in after-hours trading on Wednesday, following a merger proposal by majority shareholder Tether Investments with Strike and Elektron Energy. Tether Investment, the independent investment arm of the stablecoin issuer, has expressed 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 stated in a press release. Mallers also serves as the CEO of Twenty One Capital.
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 timelines 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 take on the role of President of the combined entity, leveraging his experience in mining and capital markets to complement Mallers' expertise in product and consumer bitcoin services.
Twenty One Capital went public in December last year through a SPAC merger with Cantor Equity Partners, initially focusing on "capital-efficient bitcoin accumulation" as a bitcoin treasury firm with 43,514 BTC, backed by Tether, Bitfinex, and Strike CEO Jack Mallers. The proposed merger is expected to expand the company's commitment to bitcoin services beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.