Shares of Twenty One Capital, a bitcoin-focused company, have seen an over 8% increase in after-hours trading on Wednesday following a proposed merger by majority shareholder Tether Investments with Strike and Elektron Energy. The move, announced through a press release, involves Tether Investment, the independent investment arm of the stablecoin issuer, voting 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.
According to the press release, the proposed merger would position Twenty One Capital as the world's premier listed Bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. 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 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, initially focusing on "capital-efficient bitcoin accumulation" with 43,514 BTC and backed by Tether, Bitfinex, and Strike CEO Jack Mallers. The proposed merger would expand the company's focus beyond treasury exposure, moving towards a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.