Twenty One Capital's shares have risen by over 8% in after-hours trading on Wednesday, driven by a proposed merger with Strike and Elektron Energy, put forth by majority shareholder Tether Investments. The merger, if successful, would bring together bitcoin-focused financial services, mining, and treasury management under one umbrella.
Tether Investment, the investment arm of the stablecoin issuer, has expressed its intention to vote in favor of the merger. According to a press release, the combined entity would create a premier listed Bitcoin company, offering a range of services including bitcoin treasury, mining, financial services, lending, and capital markets. The proposed merger would see Raphael Zagury, CEO of Elektron Energy, serve as President of the combined entity, leveraging his experience in mining and capital markets to complement Jack Mallers' expertise in product and consumer bitcoin services.
With no disclosed terms or timelines for the merger, the move is expected to expand Twenty One Capital's focus beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.