Shares of Twenty One Capital, a bitcoin-focused company, 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, 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 press release. Mallers also serves as the CEO of Twenty One Capital.
The proposed merger, if completed, would establish Twenty One Capital as the premier listed Bitcoin company globally, offering an integrated platform that combines bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation. 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, leveraging his experience in mining and capital markets alongside Mallers' expertise in product and consumer bitcoin leadership.
Twenty One Capital went public in December last year through a SPAC merger with Cantor Equity Partners, entering 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.' The proposed merger would expand on this commitment, moving the company beyond treasury exposure into other areas of bitcoin services, according to the press release. The combined transactions would transform Twenty One Capital into a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.