The value of Twenty One Capital's shares has risen by over 8% in after-hours trading on Wednesday, sparked by a proposed merger with Strike and Elektron Energy, as put forth by majority shareholder Tether Investments. According to a recent press release, Tether Investment, the investment division of the stablecoin issuer, intends to back the merger, 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 would be instrumental in this new venture.
The proposed merger aims to create a comprehensive platform that encompasses bitcoin treasury, mining, financial services, lending, and capital markets. If successful, this would establish Twenty One Capital as a leading publicly traded bitcoin company.
No specific details regarding the merger's timeline have 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 suggested that Zagury take on the role of President in 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. The company initially focused on 'capital-efficient bitcoin accumulation.' The proposed merger would expand on this commitment, venturing into other areas of bitcoin services. The combined transactions would transform Twenty One Capital, moving it beyond treasury exposure and toward a platform with operating businesses, recurring revenue opportunities, and enhanced long-term bitcoin accumulation capabilities.