Twenty One Capital's shares have risen by over 8% in after-hours trading on Wednesday, following a proposal by Tether Investments, the company's majority shareholder, to merge with Strike and Elektron Energy. The proposed merger, which Tether intends to vote in favor of, would combine the bitcoin-focused firm with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy. Mallers, who is also the CEO of Twenty One Capital, would lead the combined entity.
According to a press release, the merger would create a 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 proposed that Zagury serve as President of the combined entity, leveraging his experience in mining and capital markets to complement Mallers' expertise in product and consumer bitcoin services. Twenty One Capital went public in December through a SPAC merger with Cantor Equity Partners, entering the market as a bitcoin treasury firm with 43,514 BTC, backed by Tether, Bitfinex, and Strike CEO Jack Mallers.
The company initially focused on "capital-efficient bitcoin accumulation" but would expand into other areas of bitcoin services if the merger takes place. The proposed merger would transform Twenty One Capital into a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities, according to the press release.