Shares of Twenty One Capital, a bitcoin-centric firm, have risen over 8% in after-hours trading on Wednesday following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. According to a press release, Tether Investment, the independent investment arm of the stablecoin issuer, plans 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 combined entity. The proposed merger aims to create a premier listed Bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. If successful, the transactions would position Twenty One Capital for significant growth.
The terms and timeline of the merger have not been disclosed. Led by Raphael Zagury, Elektron Energy 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. Having gone public in December through a SPAC merger with Cantor Equity Partners, Twenty One Capital initially focused on 'capital-efficient bitcoin accumulation' with 43,514 BTC and backing from Tether, Bitfinex, and Strike CEO Jack Mallers.
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.