Twenty One Capital's shares have seen an increase of over 8% in after-hours trading on Wednesday, following the announcement by majority shareholder Tether Investments of a proposed merger with Strike and Elektron Energy. According to a press release, Tether Investments intends to vote in favor of combining Twenty One Capital with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy.
The merger, if completed, would establish Twenty One Capital as a premier listed Bitcoin company, offering an integrated platform that combines bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation. The press release stated that this would position the company for long-term growth and expansion. No specific terms or timelines for the merger 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 proposed that Zagury serve as President of the combined entity, bringing his expertise in mining and capital markets to complement Mallers' leadership in product and consumer bitcoin services. Having gone public in December through a SPAC merger with Cantor Equity Partners, Twenty One Capital initially focused on 'capital-efficient bitcoin accumulation' with a treasury of 43,514 BTC, backed by Tether, Bitfinex, and Strike CEO Jack Mallers. The proposed merger would expand the company's commitment to bitcoin services beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.