Shares of Twenty One Capital have risen over 8% in after-hours trading after Tether Investments, its majority shareholder, proposed a three-way merger with Strike and Elektron Energy. According to a press release, Tether Investment 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. Mallers also serves as the CEO of Twenty One Capital.
The proposed merger aims to create a premier listed bitcoin company that integrates bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. If successful, the deal would position Twenty One Capital as a leading player in the global bitcoin market.
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 take on the role of President of the combined entity, leveraging his expertise in mining and capital markets to complement Mallers' experience 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 plans to 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 and establish a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.