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 stakeholder Tether Investments to merge with Strike and Elektron Energy. Tether Investment, the independent investment arm of the stablecoin issuer, has announced its intention to vote in favor of combining Twenty One Capital with Strike, a global bitcoin financial services firm founded by Jack Mallers, and Elektron Energy, as stated in a press release.
Mallers also serves as the CEO of Twenty One Capital. The proposed merger aims to create a comprehensive platform that integrates bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation.
If successful, this move would position Twenty One Capital as a premier listed bitcoin company worldwide. 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 take on the role of President of the combined entity, leveraging his experience in mining and capital markets to complement Mallers' expertise in product and consumer bitcoin services. Twenty One Capital went public in December of last year through a SPAC merger with Cantor Equity Partners, initially focusing on 'capital-efficient bitcoin accumulation' with a treasury of 43,514 BTC and backing from Tether, Bitfinex, and Strike CEO Jack Mallers.
The proposed merger is expected to expand the company's focus beyond treasury exposure, establishing a platform with operating businesses, recurring revenue opportunities, and enhanced bitcoin accumulation capabilities.