Shares of Twenty One Capital have risen by over 8% in after-hours trading following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. Tether Investment, the investment arm of the stablecoin issuer, has announced its intention to support the merger of Twenty One Capital with Strike, a global bitcoin financial services company founded by Jack Mallers, and Elektron Energy. Mallers also serves as the CEO of Twenty One Capital. According to a press release, the proposed merger would position Twenty One Capital as a premier listed bitcoin company, combining 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, currently manages around 5% of the bitcoin network's computing power, with production costs below $60,000 per bitcoin. Tether has also suggested 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 last year through a merger with Cantor Equity Partners, initially focusing on 'capital-efficient bitcoin accumulation' with 43,514 BTC and backing from Tether, Bitfinex, and Strike CEO Jack Mallers. The proposed merger would expand the company's focus beyond treasury exposure to a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.