Shares of Twenty One Capital, a bitcoin-centric firm, have risen by over 8% in after-hours trading on Wednesday, following a merger proposal by majority shareholder Tether Investments. The proposed merger involves combining Twenty One Capital with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy. Tether Investments, the independent investment arm of the stablecoin issuer, has announced its intention to vote in favor of the merger, which would position Twenty One Capital as a premier listed bitcoin company.
The combined entity would offer an integrated platform for bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation. The terms and timelines 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, 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, enabling the company to offer a broader range of bitcoin services, including operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.