The value of Twenty One Capital's shares has risen by over 8% in after-hours trading, 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 the merger, which would bring together Twenty One Capital, a bitcoin-focused firm, 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 merger would position Twenty One Capital as the world's premier listed Bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into a single 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. 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.