Shares of Twenty One Capital, a bitcoin-centric firm, have risen over 8% in after-hours trading on Wednesday following a proposed merger with Strike and Elektron Energy by majority shareholder Tether Investments. According to a press release, Tether Investments 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.
As the CEO of Twenty One Capital, Mallers would play a key role in the merger. The proposed transaction would create a premier listed Bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. The terms and timelines 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 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 services.
Twenty One Capital went public in December through a SPAC merger with Cantor Equity Partners, initially focusing on "capital-efficient bitcoin accumulation" with 43,514 BTC. The proposed merger would expand the company's scope beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.