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 Investment, the independent investment arm of the stablecoin issuer, has 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. Mallers also serves as the CEO of Twenty One Capital.
According to a press release, the proposed merger would position Twenty One Capital to become the world's 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, 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 serve as President of the combined entity, leveraging his experience in mining and capital markets alongside Mallers' expertise in product and consumer bitcoin leadership. Having gone public in December through a SPAC merger with Cantor Equity Partners, Twenty One Capital initially focused on "capital-efficient bitcoin accumulation" as a bitcoin treasury firm with 43,514 BTC, backed by Tether, Bitfinex, and Strike CEO Jack Mallers. If the merger takes place, the company will expand its commitment to bitcoin services beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.