Shares of Twenty One Capital, a bitcoin-focused company, 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. According to a press release, 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 company founded by Jack Mallers, and Elektron Energy. Mallers also serves as the CEO of Twenty One Capital. The proposed merger aims to create a premier listed Bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform.
No terms or timelines have been disclosed for the merger. 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 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 leadership. Twenty One Capital went public in December last year 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 plans to expand into other areas of bitcoin services if the merger takes place. The combined transactions would transition Twenty One Capital beyond treasury exposure, establishing a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.