Following a proposal by majority shareholder Tether Investments, Twenty One Capital's shares have risen by over 8% in after-hours trading on Wednesday. The proposed merger involves combining 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 is expected to play a key role in the merged entity. According to Tether Investment, the independent investment arm of the stablecoin issuer, the 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 press release did not disclose the terms or timelines of the merger. 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 serve as President of the combined entity, leveraging his experience in mining and capital markets alongside Mallers' expertise in product and consumer bitcoin services. Having gone public in December through a SPAC merger with Cantor Equity Partners, Twenty One Capital initially focused on "capital-efficient bitcoin accumulation" with 43,514 BTC and backing from Tether, Bitfinex, and Jack Mallers. The proposed merger is expected to 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.