Following the announcement of a proposed merger by majority shareholder Tether Investments, Twenty One Capital's shares have risen over 8% in after-hours trading on Wednesday. The merger would combine 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 lead the combined entity, which would integrate bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. The merger aims to establish Twenty One Capital as the premier listed Bitcoin company globally. Tether Investment, the investment arm of the stablecoin issuer, has expressed its intention to vote in favor of the merger. Led by Raphael Zagury, Elektron Energy currently manages approximately 5% of the bitcoin network's computing power.
The proposed merger would see Zagury serve as President of the combined entity, bringing his expertise in mining and capital markets to complement Mallers' leadership in product and consumer bitcoin services. Since going public in December through a SPAC merger with Cantor Equity Partners, Twenty One Capital has focused on 'capital-efficient bitcoin accumulation' with 43,514 BTC and backing from Tether, Bitfinex, and Strike CEO Jack Mallers. The new merger would 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.