Shares of Twenty One Capital, a bitcoin-focused company, have surged over 8% in after-hours trading following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. The proposed merger, which would combine the three entities under one roof, is intended to create a premier listed Bitcoin company. According to a press release, Tether Investment plans to vote in favor of the merger, which would integrate bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into a single platform.
The merger would position Twenty One Capital, led by CEO Jack Mallers, as a leading player in the bitcoin industry. No terms or timelines for the merger have been disclosed.
Elektron Energy, which manages approximately 5% of the current bitcoin network's computing power, would bring its mining and capital markets expertise to the combined entity. Tether has also proposed that Elektron Energy's leader, Raphael Zagury, serve as President of the merged company, complementing Mallers' experience in product and consumer bitcoin services.
The proposed merger marks a significant expansion of Twenty One Capital's operations, which currently focus on bitcoin treasury management. If completed, the merger would enable the company to move beyond treasury exposure and establish a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.