Shares of Twenty One Capital, a firm focused on bitcoin, have jumped over 8% in after-hours trading on Wednesday. This surge follows a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. Tether Investment, the investment arm of the stablecoin issuer, 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. Mallers also serves as the CEO of Twenty One Capital.
According to a press release, the proposed merger would position Twenty One Capital to become the world's premier listed bitcoin company. This would be achieved by integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform.
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 serve as President of the combined entity, combining his experience in mining and capital markets with 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. Initially, the company focused on 'capital-efficient bitcoin accumulation' with 43,514 BTC and backing from Tether, Bitfinex, and Strike CEO Jack Mallers. If the merger takes place, the company will expand beyond its initial treasury commitment into other areas of bitcoin services.
The combined transactions would transform Twenty One Capital into a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.