Shares of Twenty One Capital, a bitcoin-centric 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. According to a press release, Tether Investment, the independent investment arm of the stablecoin issuer, 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.
Mallers also serves as the CEO of Twenty One Capital. The proposed merger is expected to position Twenty One Capital as the world's premier listed Bitcoin company, offering an integrated platform that encompasses bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation. No terms or timelines have been disclosed for the merger.
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 last year through a SPAC merger with Cantor Equity Partners, entering the market as a bitcoin treasury firm with 43,514 BTC and backed by Tether, Bitfinex, and Strike CEO Jack Mallers. The company initially focused on "capital-efficient bitcoin accumulation" but is set to expand its services into other areas of bitcoin if the merger takes place, according to the press release. The combined transactions would enable Twenty One Capital to move beyond treasury exposure and establish a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.