Twenty One Capital's shares have risen by over 8% in after-hours trading, following the announcement of a proposed merger by Tether Investments, the company's majority shareholder. The merger aims to bring together Twenty One Capital, Strike, and Elektron Energy under one umbrella. Strike, a global bitcoin financial services company, was founded by Jack Mallers, who also serves as the CEO of Twenty One Capital. According to a press release, Tether Investments intends to vote in favor of the merger, which would integrate bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into a single platform.
The combined entity would be led by Jack Mallers as CEO, with Raphael Zagury, the CEO of Elektron Energy, serving as President. Zagury's company currently manages around 5% of the bitcoin network's computing power, with production costs below $60,000 per bitcoin.
The proposed merger would expand Twenty One Capital's focus beyond bitcoin accumulation, providing a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities. The terms and timeline of the merger have not been disclosed.