Shares of Twenty One Capital, a firm focused on bitcoin, have risen by over 8% in after-hours trading on Wednesday. This surge follows the announcement by majority shareholder Tether Investments, proposing a merger with Strike and Elektron Energy. Tether Investment, the independent investment arm of the stablecoin issuer, intends to support the combination of 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 create a premier listed Bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. No details on the terms or timeline of the merger have been disclosed.
Led by Raphael Zagury, Elektron Energy 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 take on the role of President of the combined entity, leveraging his experience in mining and capital markets alongside 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. Initially, the company focused on "capital-efficient bitcoin accumulation." The proposed merger is expected to expand the company's commitment beyond treasury exposure, establishing a platform with operating businesses, recurring revenue opportunities, and enhanced long-term Bitcoin accumulation capabilities.