The value of Twenty One Capital's shares has risen by over 8% in after-hours trading, following the announcement by Tether Investments, the company's majority shareholder, of a proposed merger with Strike and Elektron Energy. Tether Investments, the investment arm of the stablecoin issuer, has stated 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, who is also the CEO of Twenty One Capital, would lead the combined entity. The proposed merger aims to create a premier listed bitcoin company, offering a range of services including bitcoin treasury, mining, financial services, lending, and capital markets.
If successful, the merger would position Twenty One Capital as a leading player in the bitcoin industry, with a diversified platform and significant growth potential. The terms and timeline of the proposed merger have not been disclosed.
Elektron Energy, which is 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, bringing his expertise in mining and capital markets to complement Mallers' experience in product and consumer bitcoin services. Twenty One Capital went public in December last year through a merger with Cantor Equity Partners, with a focus on 'capital-efficient bitcoin accumulation.' The proposed merger would expand the company's services beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.