Shares of Twenty One Capital, a firm focused on bitcoin, have risen by over 8% in after-hours trading on Wednesday. This increase comes after Tether Investments, the majority shareholder, proposed a merger with Strike and Elektron Energy. Tether Investment, the independent 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.
Mallers is also the CEO of Twenty One Capital. According to a press release, the proposed merger would position Twenty One Capital to become 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. Led by Raphael Zagury, Elektron Energy manages approximately 5% of the current 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, combining his mining and capital markets experience with Mallers' product and consumer bitcoin leadership. Twenty One Capital went public in December of last year through a SPAC merger with Cantor Equity Partners, entering 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" but plans to expand into other parts of bitcoin services if the merger takes place.
The combined transactions would move Twenty One Capital beyond treasury exposure alone, towards a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.