Shares of Twenty One Capital, a firm focused on bitcoin, have risen by over 8% in after-hours trading on Wednesday. This surge follows 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 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. As the CEO of Twenty One Capital, Mallers is a key figure in this proposed merger.
According to a press release, the combined entity would position Twenty One Capital as the premier listed bitcoin company globally, 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 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 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 and backed by Tether, Bitfinex, and Strike CEO Jack Mallers. Initially, the company focused on 'capital-efficient bitcoin accumulation.' The proposed merger would expand this commitment to include other aspects of bitcoin services. The combined transactions would transform Twenty One Capital from a treasury-focused entity to a platform with operating businesses, recurring revenue opportunities, and enhanced long-term bitcoin accumulation capabilities.