SKN | Twenty One Capital Jumps on Tether-Backed Merger Plan With Strike and Elektron

Twenty One Capital saw its shares rise in after-hours trading following a proposed multi-stage merger backed by Tether.

The stock closed down 1.7% at $7.83 during regular trading but surged to a high of $9.28 after hours before settling at $8.35, marking a 6.6% gain. The move reflects investor optimism around the potential transformation of the company’s business model.

Three-Way Merger Aims to Build Full Bitcoin Platform

Tether proposed a merger between Twenty One Capital and Strike, followed by a second merger with Elektron Energy.

If completed, the combined entity would integrate multiple layers of the Bitcoin ecosystem. Strike would contribute a profitable financial services platform along with global distribution and regulatory infrastructure, while Elektron would add large-scale mining capabilities and operational depth.

The strategy signals a shift from a pure Bitcoin holding company toward a fully integrated Bitcoin-focused platform combining payments, infrastructure, and treasury operations.

Leadership Structure Reflects Combined Expertise

Under the proposal, Elektron founder Raphael Zagury would serve as president of the merged company. Meanwhile, Jack Mallers, who is also co-founder and CEO of Twenty One Capital, would take on an executive leadership role.

Tether stated that the structure is designed to blend Mallers’ strength in product development and consumer Bitcoin adoption with Zagury’s experience in capital markets and operational execution.

Expanding Beyond Bitcoin Treasury Strategy

Twenty One Capital currently holds 43,514 Bitcoin, making it the second-largest Bitcoin-holding public company after Strategy, Inc..

The company initially went public in December through a merger with Cantor Equity Partners, with a strategy focused on increasing Bitcoin per share. However, its stock has declined more than 10% this year alongside broader Bitcoin price weakness.

The proposed merger represents a significant evolution, positioning the company to move beyond passive exposure to Bitcoin and into active revenue-generating operations.

Outlook: From Treasury Play to Operating Ecosystem

If the deal proceeds, Twenty One Capital could emerge as a vertically integrated Bitcoin company with exposure across payments, mining, and financial services. This diversification could provide more stable revenue streams compared to a pure treasury model, which is heavily dependent on Bitcoin price movements.

However, the absence of disclosed deal terms or a timeline introduces uncertainty. Investors will be closely watching execution details, integration risks, and whether the combined entity can deliver sustainable growth.

The proposal highlights a broader trend in the crypto sector, where companies are increasingly looking to combine infrastructure, services, and asset exposure into unified platforms to capture long-term value.