Twenty One Capital's shares have jumped 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 the CEO of Twenty One Capital, Mallers is expected to play a key role in the merged entity.
According to a press release, the proposed merger would position Twenty One Capital as 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 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 proposed that Zagury serve as President of the combined entity, leveraging his mining and capital markets expertise alongside Mallers' product and consumer bitcoin experience.
Following its public listing in December through a SPAC merger with Cantor Equity Partners, Twenty One Capital entered 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, Twenty One Capital will expand its commitment to bitcoin services beyond treasury exposure, establishing a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities.