Shares of Twenty One Capital, a bitcoin-focused company, have risen by over 8% in after-hours trading on Wednesday, following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. Tether Investment, the independent investment arm of the stablecoin issuer, announced its intention to vote in favor of the merger, which would combine Twenty One Capital with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy. The proposed merger is expected to create a premier listed Bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. If successful, the merger would expand Twenty One Capital's focus beyond bitcoin accumulation, positioning it as a comprehensive platform with operating businesses and recurring revenue opportunities.
Led by Raphael Zagury, Elektron Energy currently manages approximately 5% of the bitcoin network's computing power, with production costs below $60,000 per bitcoin. The proposed merger also includes the appointment of Zagury as President of the combined entity, leveraging his expertise in mining and capital markets alongside Mallers' experience in product and consumer bitcoin leadership.