Shares of Twenty One Capital have risen over 8% in after-hours trading following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. The proposed merger, announced in a press release, would bring together bitcoin-focused firm Twenty One Capital, global bitcoin financial services company Strike, founded by Jack Mallers, and Elektron Energy.
As the CEO of Twenty One Capital, Mallers would play a key role in the combined entity. According to the proposal, the merger would create a premier listed bitcoin company, integrating bitcoin treasury, mining, financial services, lending, and capital markets into one platform.
The terms and timeline 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 suggested 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.
Having gone public in December through a SPAC merger with Cantor Equity Partners, Twenty One Capital initially focused on 'capital-efficient bitcoin accumulation' with 43,514 BTC and backing from Tether, Bitfinex, and Jack Mallers. The proposed merger would expand the company's focus beyond treasury exposure to encompass operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.