Shares of Twenty One Capital have risen over 8% in after-hours trading 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 the merger. The proposed combination would bring together bitcoin treasury, mining, and financial services under one umbrella, positioning Twenty One Capital as a premier listed bitcoin company.
The merger aims to create a public company that integrates bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into a single platform. No terms or timelines have been disclosed for the merger.
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 Jack Mallers' expertise in product and consumer bitcoin services. Twenty One Capital went public in December through a SPAC merger with Cantor Equity Partners, entering the market as a bitcoin treasury firm with 43,514 BTC.
The company is backed by Tether, Bitfinex, and Strike CEO Jack Mallers, and initially focused on 'capital-efficient bitcoin accumulation.' 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.