Shares of Twenty One Capital, a bitcoin-focused company, have risen by over 8% in after-hours trading on Wednesday, following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. The proposed merger, which Tether intends to vote in favor of, aims to combine the bitcoin treasury, mining, and financial services of the three companies under one roof.
According to a press release, the combined entity would position Twenty One Capital as the premier listed bitcoin company globally, offering an integrated platform that includes bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation. The proposed merger is expected to expand the company's focus beyond bitcoin accumulation, with the combined entity having operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities. Raphael Zagury, the leader of Elektron Energy, which manages approximately 5% of the current bitcoin network's computing power, has been proposed to serve as President of the combined entity, bringing his mining and capital markets expertise to complement Jack Mallers' product and consumer bitcoin leadership.