The value of Twenty One Capital has increased by over 8% in after-hours trading, 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, has announced 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. Mallers is also the CEO of Twenty One Capital.
According to a press release, the proposed merger aims to create 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 approximately 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.
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" but is now set to expand its services through the proposed merger. The combined transactions would enable Twenty One Capital to move beyond treasury exposure, establishing a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.