Following a proposal by majority shareholder Tether Investments, Twenty One Capital's shares have risen by over 8% in after-hours trading on Wednesday. The proposed merger involves 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 combined entity.
According to the proposal, the merger would position Twenty One Capital as a premier listed bitcoin company, offering an integrated platform that encompasses bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation. The press release did not disclose the terms or timeline of the merger. 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 suggested that Zagury serve as President of the combined entity, complementing Mallers' expertise in product and consumer bitcoin with his own experience in mining and capital markets.
Twenty One Capital went public in December through a SPAC merger with Cantor Equity Partners, initially focusing on 'capital-efficient bitcoin accumulation' with 43,514 BTC and backing from Tether, Bitfinex, and Jack Mallers. The proposed merger would 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.