The value of Twenty One Capital's shares has risen by over 8% in after-hours trading on Wednesday, following an announcement by majority shareholder Tether Investments that it plans to merge with Strike and Elektron Energy. Tether Investments, the investment arm of the stablecoin issuer, has stated 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, as outlined in a recent press release. Mallers also serves as the CEO of Twenty One Capital.
According to the press release, 'the proposed transactions 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 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 combined entity, bringing his experience in mining and capital markets to complement Mallers' expertise in product and consumer bitcoin services.
Twenty One Capital became a publicly traded company in December last year through a merger with Cantor Equity Partners, initially focusing on 'capital-efficient bitcoin accumulation' with 43,514 BTC and backed by Tether, Bitfinex, and Strike CEO Jack Mallers. If the merger takes place, the company plans to expand its services beyond treasury management to include other aspects of bitcoin services, as stated in the press release. The combined transactions 'would transform Twenty One Capital from a treasury-focused entity to a platform with operating businesses, recurring revenue streams, and long-term bitcoin accumulation capabilities,' the statement added.