Twenty One Capital's shares have risen by over 8% in after-hours trading on Wednesday, following the announcement by majority shareholder Tether Investments of a proposed merger with Strike and Elektron Energy. Tether Investment, the 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 stated in a press release. Mallers also serves as the CEO of Twenty One Capital. According to the press release, 'upon completion, these transactions would position Twenty One Capital to become the world's premier listed Bitcoin company, offering an integrated platform that combines Bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation.' 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 take on the role of 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 in December of last year through a SPAC merger with Cantor Equity Partners, initially focusing on 'capital-efficient bitcoin accumulation' as a bitcoin treasury firm with 43,514 BTC, backed by Tether, Bitfinex, and Strike CEO Jack Mallers. The proposed merger is expected to expand the company's commitment to bitcoin services beyond treasury exposure, according to the press release. 'The combined transactions would transform Twenty One Capital from a treasury-focused entity to a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities,' the statement added.