Shares of Twenty One Capital, a firm focused on bitcoin, have seen an increase of over 8% in after-hours trading on Wednesday. This surge comes after Tether Investments, the majority shareholder, proposed a merger with Strike and Elektron Energy. Tether Investments, the independent investment arm of the stablecoin issuer, intends to vote in favor of combining 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 to become the world's premier listed bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. The terms and timelines 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 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 and backed by Tether, Bitfinex, and Strike CEO Jack Mallers. The company initially 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, including operating businesses and recurring revenue opportunities.