Twenty One Capital jumps as Tether backs Strike merger plan

Twenty One Capital shares rose after hours after Tether backed a proposed merger with Strike and Elektron Energy. 

The plan could move the Bitcoin-buying company beyond treasury holdings and into payments, mining, and financial services.

Tether said it intends to vote in favor of merging Twenty One Capital with Strike. The combined company would then merge with Bitcoin mining firm Elektron Energy.

The proposal would bring together three parts of the Bitcoin market. Strike would add payments, distribution, and regulatory infrastructure. Elektron would add mining operations and execution capacity.

Twenty One Capital shares climb after hours

Twenty One Capital shares closed Wednesday down 1.7% at $7.83. However, the stock later rose to $9.28 in after-hours trading.

The shares settled at $8.35 after the bell, marking a 6.6% gain. The move came as investors reacted to Tether’s merger proposal.

Moreover, Tether proposed Elektron founder and CEO Raphael Zagury as president of the merged company. Strike founder Jack Mallers would also hold an executive role.

Tether said the proposed structure would combine “Mallers’ product, brand, and consumer Bitcoin leadership” with “Zagury’s capital markets, operating, and execution experience.”

Bitcoin strategy could expand

Twenty One Capital went public in December through a merger with Cantor Equity Partners. It launched with 43,500 Bitcoin and aimed to grow Bitcoin per share.

The company now holds 43,514 Bitcoin. It ranks second among public companies, behind Strategy, Inc., which holds 818,334 Bitcoin.

Tether said the deal could move Twenty One beyond treasury exposure alone. It added that the company could build operating businesses, recurring revenue, and long-term Bitcoin accumulation capacity.