Shares of Twenty One Capital, a firm focused on bitcoin, have risen by over 8% in after-hours trading on Wednesday. This surge follows a proposal by Tether Investments, the majority shareholder, for a merger with Strike and Elektron Energy. Tether Investments, 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. The proposed merger aims to create a premier listed bitcoin company that integrates bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. No terms or timelines for the merger have been disclosed. Elektron Energy, led by Raphael Zagury, currently manages approximately 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 leadership. 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 the company's commitment to bitcoin services beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.