Shares of Twenty One Capital, a firm focused on bitcoin, have risen by over 8% in after-hours trading on Wednesday. This surge follows a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. According to a press release, Tether Investment, 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.
The proposed merger is expected to position Twenty One Capital as the premier listed bitcoin company globally, 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, 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 leadership. Twenty One Capital went public in December 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. The company initially focused on 'capital-efficient bitcoin accumulation.' If the merger proceeds, the company plans to expand its services beyond treasury exposure, moving towards a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.