The value of Twenty One Capital's shares has risen by over 8% in after-hours trading on Wednesday, following the announcement by majority shareholder Tether Investments of a proposed merger with Strike and Elektron Energy. According to a press release, Tether Investment, the independent investment arm of the stablecoin issuer, plans 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 also a key figure in this development. The proposed merger is expected to create a premier listed bitcoin company, integrating bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one platform. No details regarding the terms or timelines of the merger have 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 expertise in mining and capital markets alongside Mallers' experience in product and consumer bitcoin leadership. 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." The proposed merger is expected to expand the company's commitment to bitcoin services beyond treasury exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.