Shares of Twenty One Capital, a bitcoin-centric company, have risen 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, intends to vote in favor of combining Twenty One Capital with Strike, a global bitcoin financial services firm founded by Jack Mallers, and Elektron Energy. According to a press release, this proposed merger would position Twenty One Capital as the premier listed bitcoin company worldwide, 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 approximately 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 mining and capital markets expertise alongside Mallers' product and consumer bitcoin leadership.
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 Strike CEO Jack Mallers. The proposed merger would expand the company's commitment to bitcoin services beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.