The shares of Twenty One Capital ( XXI ) , the bitcoin-focused firm, are up over 8% in after-hours trading on Wednesday, after majority shareholder Tether Investments proposed a merger with Strike and Elektron Energy.

Tether Investment, the independent investment arm of the stablecoin issuer, said it intends to vote its shares in favor of combining XXI with Strike, a global bitcoin financial services company founded by Jack Mallers and Elektron Energy, according to a press release. Mallers is also the CEO of XXI.

"If completed, these transactions would position XXI to become the premier listed Bitcoin company in the world: a public company that combines Bitcoin treasury, mining, financial services, lending, capital markets, and strategic consolidation into one integrated platform," according to the press release.

No terms of timelines were disclosed for the merger.

Led by Raphael Zagury, Elektron Energy manages approximately 5% of the current bitcoin network's computing power with all-in production costs below $60,000 per bitcoin.

Tether also proposed that Zagury serve as President of the combined entity, pairing his mining and capital markets experience with Mallers' product and consumer bitcoin leadership.

XXI went public in December of last year through a SPAC merger with Cantor Equity Partners. The company entered the market as a bitcoin treasury firm with 43,514 BTC and is backed by Tether, Bitfinex and Strike CEO Jack Mallers. At the time, it said it would focus on “capital-efficient bitcoin accumulation.”

If the new merger takes place, the company will expand on this previous treasury commitment into other parts of bitcoin services, the press release said.

"The combined transactions would move XXI beyond treasury exposure alone and toward a platform with operating businesses, recurring revenue opportunities, and long-term Bitcoin accumulation capabilities," the statement added.