Shares of Twenty One Capital, a bitcoin-focused company, have risen over 8% in after-hours trading on Wednesday following a proposed merger with Strike and Elektron Energy by majority shareholder Tether Investments. According to a press release, Tether Investment 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. This potential merger would position Twenty One Capital as a leading 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. Led by Raphael Zagury, Elektron Energy currently manages around 5% of the bitcoin network's computing power, with production costs below $60,000 per bitcoin. Tether has 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. Following its public listing in December through a SPAC merger with Cantor Equity Partners, Twenty One Capital entered the market as a bitcoin treasury firm with 43,514 BTC, backed by Tether, Bitfinex, and Strike CEO Jack Mallers.
The proposed merger would expand the company's focus beyond treasury exposure to a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.