Tether Buys Out SoftBank Stake in Bitcoin Treasury Firm Twenty One

Background on Twenty One Capital

Twenty One Capital, also known as XXI, emerged as a major player in corporate Bitcoin strategies. Launched in 2025 with backing from Tether, SoftBank, and other investors, the company positioned itself as a dedicated Bitcoin treasury firm. Led by Strike founder Jack Mallers as CEO, it went public through a reverse merger with a Cantor Fitzgerald-affiliated SPAC in December 2025.

At formation, the company started with a substantial Bitcoin holding of around $3.6 billion. Tether held controlling ownership from the start, while SoftBank took a minority stake. The firm has since accumulated 43,514 BTC, making it the second-largest public corporate Bitcoin holder after MicroStrategy.

SoftBank's Exit and Tether's Acquisition

Tether International announced on May 20, 2026, that it has acquired SoftBank’s entire stake in Twenty One Capital. Following the transaction, SoftBank’s representatives stepped down from the company’s board of directors in line with the shareholder agreement.

Tether described the move as reflecting the continued development of XXI and its advancement of a long-term Bitcoin strategy. Prior to the deal, Tether owned around 45% of the firm, with an affiliate holding an additional 17%. SoftBank’s stake was reported as approximately 26% of publicly listed shares.

Stock Performance Challenges

Since the SPAC merger, Twenty One Capital’s stock has faced significant pressure. It reached a peak of around $49-53 shortly after the initial announcement but before the merger completed. As of the latest reports, the share price has fallen approximately 84% from that high, trading near $7-8 levels.

Despite the equity decline, Tether maintains strong confidence in the underlying Bitcoin treasury strategy and the company’s potential as a public Bitcoin-focused entity.

Strategic Outlook and Future Plans

Tether has proposed a multi-step merger plan that would first combine Twenty One Capital with Strike, followed by a potential integration with Bitcoin mining company Elektron Energy. The goal appears to be creating a more diversified, integrated Bitcoin-native public company covering treasury, payments, and mining operations.

This development underscores Tether’s deepening commitment to Bitcoin infrastructure and corporate adoption. As the stablecoin issuer expands its influence in the Bitcoin ecosystem, the acquisition consolidates control and removes one layer of external investor governance.

The transaction highlights shifting dynamics in Bitcoin treasury companies, where initial institutional backing provides credibility during formation, but operators like Tether seek greater control to execute long-term strategies amid volatile public markets.