Shares of Twenty One Capital 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 Investments, the independent investment arm of the stablecoin issuer, has expressed 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. The proposed merger aims to create a 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, currently manages around 5% of the 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 services. Twenty One Capital went public in December last year through a SPAC merger with Cantor Equity Partners, initially focusing on "capital-efficient bitcoin accumulation" with a bitcoin treasury of 43,514 BTC, backed by Tether, Bitfinex, and Strike CEO Jack Mallers.
If the merger is successful, the company will expand its services beyond treasury exposure, moving towards a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.