Twenty One Capital's shares have risen by over 8% in after-hours trading on Wednesday, following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. Tether Investments, the independent investment arm of the stablecoin issuer, announced its intention 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 recent press release. Mallers also serves as the CEO of Twenty One Capital.
The proposed merger aims to position Twenty One Capital as the premier listed Bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into a single platform. The terms and timeline of the merger have not been disclosed. 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 proposed that Zagury take on the role of President of the combined entity, combining his experience in mining and capital markets with Mallers' expertise in product and consumer bitcoin services.
Following its public listing in December through 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 company initially focused on "capital-efficient bitcoin accumulation" but is set to expand into other areas of bitcoin services if the merger takes place.
The combined transactions would enable Twenty One Capital to move beyond treasury exposure and establish a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.