The value of Twenty One Capital shares has risen by over 8% in after-hours trading, driven by a proposed merger with Strike and Elektron Energy, put forth by majority shareholder Tether Investments. According to a press release, Tether intends to support the merger, which would bring together bitcoin-focused firm Twenty One Capital, global bitcoin financial services company Strike, and Elektron Energy under one umbrella. Strike's founder, Jack Mallers, who also serves as CEO of Twenty One Capital, would lead the combined entity.
The merger aims to create a comprehensive platform that combines bitcoin treasury, mining, financial services, lending, and capital markets. With this integration, the new entity would be well-positioned to become a leading publicly traded bitcoin company. The proposed merger would also see Raphael Zagury, Elektron Energy's leader, appointed as President, bringing his expertise in mining and capital markets to complement Mallers' experience in product and consumer bitcoin services. Having gone public in December through a SPAC merger, Twenty One Capital initially focused on "capital-efficient bitcoin accumulation" with a treasury of 43,514 BTC.
The proposed merger would expand the company's scope beyond treasury services, incorporating operating businesses, revenue streams, and long-term bitcoin accumulation capabilities.