Shares of Twenty One Capital, a bitcoin-focused company, have risen by over 8% in after-hours trading following a proposal by majority shareholder Tether Investments to merge with Strike and Elektron Energy. According to a press release, Tether Investment intends to vote in favor of combining Twenty One Capital with Strike, a global bitcoin financial services firm founded by Jack Mallers, and Elektron Energy.
Mallers serves as the CEO of Twenty One Capital. The proposed merger aims to create a 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 also suggested 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 services. Twenty One Capital went public last 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 Strike CEO Jack Mallers. The proposed merger would expand the company's commitment to bitcoin services beyond treasury management, creating a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.