Shares of Twenty One Capital, a bitcoin-focused company, have risen by over 8% in after-hours trading on Wednesday, following a merger proposal by majority shareholder Tether Investments with Strike and Elektron Energy. Tether Investment, the independent investment arm of the stablecoin issuer, announced its intention to vote in favor of combining Twenty One Capital with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy. According to a press release, this merger would position Twenty One Capital to become the world's premier listed Bitcoin company, offering an integrated platform that combines bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation. The proposed merger would bring together the expertise of Jack Mallers, CEO of Twenty One Capital, and Raphael Zagury, who would serve as President of the combined entity, leveraging his experience in mining and capital markets.
The terms and timelines of the merger have not been disclosed. 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. If the merger is completed, Twenty One Capital will expand its focus beyond bitcoin treasury to include other areas of bitcoin services, providing operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.