Twenty One Capital's shares have risen by over 8% in after-hours trading, following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. The merger, which Tether intends to support with its shares, would integrate bitcoin-focused firm 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 play a key role in the combined entity.
According to the proposal, the merger would create a premier listed bitcoin company, offering a range of services including bitcoin treasury, mining, financial services, lending, and capital markets. The combined entity would be led by Mallers and Raphael Zagury, who would serve as President, bringing together their expertise in mining, capital markets, and consumer bitcoin services. With approximately 5% of the current bitcoin network's computing power, Elektron Energy would contribute significant mining capabilities to the merged entity. The proposal marks a significant expansion of Twenty One Capital's initial focus on 'capital-efficient bitcoin accumulation,' as the company would now provide a broader range of bitcoin services, including operating businesses and recurring revenue opportunities.