Shares of Twenty One Capital, a bitcoin-focused company, have risen by over 8% in after-hours trading 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, 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.
According to a press release, this merger would position Twenty One Capital to become the world's 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 approximately 5% of the bitcoin network's computing power with production costs below $60,000 per bitcoin.
Tether has 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. Following its public listing in December via 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 proposed merger would expand the company's focus beyond treasury exposure to a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.