Shares of Twenty One Capital, a firm focused on bitcoin, have risen by over 8% in after-hours trading on Wednesday. This surge comes after Tether Investments, the majority shareholder, proposed a three-way merger with Strike and Elektron Energy. Tether Investments, the 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. According to a press release, this merger 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 services. Twenty One Capital went public last December through a SPAC merger with Cantor Equity Partners, initially focusing 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.