Twenty One Capital's shares have risen by over 8% in after-hours trading after Tether Investments, its majority shareholder, proposed a three-way merger with Strike and Elektron Energy. The merger, which Tether intends to support with its shares, would bring together bitcoin-focused firm Twenty One Capital, global bitcoin financial services company Strike, founded by Jack Mallers, and Elektron Energy.
Mallers is also the CEO of Twenty One Capital. According to the proposal, the combined entity would create a premier listed Bitcoin company, offering an integrated platform that combines bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation. 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 merged entity, leveraging his experience in mining and capital markets to complement 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 proposed merger would expand the company's focus beyond bitcoin accumulation, integrating it with other bitcoin services.
The combined transactions would transform Twenty One Capital into a platform with operating businesses, recurring revenue streams, and long-term bitcoin accumulation capabilities.