Shares of Twenty One Capital, a firm focused on bitcoin, have risen 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 independent 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 these transactions are completed, Twenty One Capital will be positioned to become the world's premier listed bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into a single platform." The terms and timelines of the merger have not been disclosed. Elektron Energy, led by Raphael Zagury, 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 experience in mining and capital markets with Mallers' expertise in product and consumer bitcoin services. 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.
At the time, the company stated its focus on "capital-efficient bitcoin accumulation." If the proposed merger takes place, the company will expand its commitment to bitcoin services beyond treasury exposure, according to the press release. "The combined transactions will move Twenty One Capital beyond treasury exposure alone, toward a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities," the statement added.