Shares of Twenty One Capital, a firm focused on bitcoin, 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. 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 company founded by Jack Mallers, and Elektron Energy. Mallers also serves as the CEO of Twenty One Capital. According to a press release, the proposed merger would position Twenty One Capital to become 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 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 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 a treasury of 43,514 BTC.
The proposed merger would expand the company's scope beyond treasury services to include other aspects of bitcoin services, according to the press release. The combined transactions would transform Twenty One Capital into a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.