Twenty One Capital's shares have risen by 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, has 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.
According to a press release, this 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 timelines 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 proposed that Zagury serve as President of the combined entity, complementing Mallers' product and consumer bitcoin expertise with his own experience in mining and capital markets.
Having gone public through a SPAC merger with Cantor Equity Partners in December last year, Twenty One Capital initially focused 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 exposure, creating a platform with operating businesses, recurring revenue opportunities, and long-term bitcoin accumulation capabilities.