Shares of Twenty One Capital, a firm focused on bitcoin, have risen by over 8% in after-hours trading on Wednesday. This increase 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 announced its intention to vote in favor of the merger.
The proposed merger would bring together XXI, Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy. Jack Mallers is also the CEO of XXI. According to a press release, the merger would position XXI as the premier listed Bitcoin company globally, offering an integrated platform that combines bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation. The terms and timeline for 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 proposed that Zagury serve as President of the combined entity, pairing his experience in mining and capital markets with Mallers' expertise in product and consumer bitcoin leadership. Following its public listing in December through a SPAC merger with Cantor Equity Partners, XXI 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.' If the merger takes place, the company will expand its services beyond treasury exposure, moving toward a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.