Shares of Twenty One Capital, a firm focused on bitcoin, have risen by over 8% in after-hours trading on Wednesday following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. Tether Investment, the investment arm of the stablecoin issuer, announced 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, "if the transactions are completed, they would position Twenty One Capital to become the world's premier listed Bitcoin company: a public company that integrates Bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform." The terms and timeline of the merger have not been disclosed.
Elektron Energy, led by Raphael Zagury, manages around 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, leveraging his experience in mining and capital markets alongside Mallers' expertise in product and consumer bitcoin.
Twenty One Capital went public in December 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. Initially, the company focused on "capital-efficient bitcoin accumulation." The proposed merger would expand on this commitment, moving the company beyond treasury exposure into other areas of bitcoin services, according to the press release.
The statement added, "the combined transactions would move Twenty One Capital beyond treasury exposure alone and toward a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities."