Shares of Twenty One Capital have risen by over 8% in after-hours trading, sparked by a proposal from majority shareholder Tether Investments to merge with Strike and Elektron Energy. Tether Investments, the investment arm of the stablecoin issuer, intends to support the merger, which would combine 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 lead the combined entity.
The proposed merger aims to create a premier listed bitcoin company, 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 suggested that Zagury take on the role of 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 this commitment to include other aspects of bitcoin services, according to the press release. The combined transactions would transform Twenty One Capital into a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.