Following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy, the shares of Twenty One Capital have risen over 8% in after-hours trading. The merger aims to integrate bitcoin treasury, mining, and financial services into one platform. Tether Investment, the independent investment arm of the stablecoin issuer, intends to vote in favor of the merger, which would position Twenty One Capital as a premier listed bitcoin company. The combined entity would offer a range of services, including bitcoin treasury, mining, financial services, lending, and capital markets.
Led by Raphael Zagury, Elektron Energy currently manages around 5% of the bitcoin network's computing power. Tether has proposed that Zagury serve as President of the combined entity, complementing Jack Mallers' expertise in product and consumer bitcoin services. The merger is expected to expand Twenty One Capital's focus beyond bitcoin accumulation, with the company set to offer operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.