Shares of Twenty One Capital, a firm focused on bitcoin, have risen by over 8% in after-hours trading on Wednesday following the announcement by majority shareholder Tether Investments of a proposed merger with Strike and Elektron Energy. Tether Investments, the independent investment arm of the stablecoin issuer, has expressed 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, according to a recent press release. Mallers also serves as the CEO of Twenty One Capital. The proposed merger aims to create a premier listed bitcoin company that integrates 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 also proposed that Zagury serve as President of the combined entity, leveraging his experience in mining and capital markets in conjunction with Mallers' expertise in product and consumer bitcoin services. Following its public listing in December through a SPAC merger with Cantor Equity Partners, Twenty One Capital entered 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.' The proposed merger is expected to 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.