Twenty One Capital's shares have risen over 8% in after-hours trading on Wednesday following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. Tether Investment, the 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. The proposed merger would position Twenty One Capital as 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, manages around 5% of the current 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 mining and capital markets expertise alongside Mallers' product and consumer bitcoin leadership. Following its public listing in December through a SPAC merger with Cantor Equity Partners, Twenty One Capital will expand its focus beyond bitcoin treasury to include other bitcoin services if the merger is successful.