Tether has moved to consolidate its position in Bitcoin-focused investment firm Twenty One Capital (XXI), after acquiring the full stake previously held by SoftBank. The transaction, announced on 20 May, shifts control of the NYSE-listed company further toward the stablecoin issuer and marks a structural change in the firm’s governance.
The deal removes SoftBank’s representation from XXI’s board, in line with the company’s shareholder agreement. Tether did not disclose the purchase price. Regulatory filings show that the acquisition covers roughly 89.1 million shares, which represented SoftBank’s entire position.
The change follows a period of volatility in XXI’s valuation and comes as Tether pushes a broader strategy that extends beyond passive Bitcoin accumulation.
A shift in ownership and board structure
Twenty One Capital launched in April 2025 through a merger with Cantor Equity Partners, a special-purpose acquisition company linked to Cantor Fitzgerald. The firm entered public markets with more than 42,000 Bitcoin contributed by founding backers, including Tether and SoftBank.
SoftBank held a significant minority stake from the outset. By December, it controlled about a quarter of Class A shares and nearly 30% of Class B shares, which carry enhanced voting power. The latest filing confirms that SoftBank’s Class B shares have now been canceled, reinforcing Tether’s control over voting rights.
The governance shift also creates an immediate operational requirement. One departing SoftBank representative held a position on the audit committee. The company acknowledged that the committee now lacks the required number of independent members under exchange rules and plans to appoint a replacement.
Stock performance highlights investor caution
XXI’s market performance presents a contrast to its initial positioning as a major corporate Bitcoin holder. Shares closed at $7.79 on 20 May, far below a 52-week high of $53.00, according to Google Finance data. The stock has declined sharply over the past year, even as Bitcoin traded near $77,000 in recent sessions, according to HodlFM data.
The company’s market capitalization stands near $5.1 billion to $5.2 billion, depending on daily fluctuations. That figure exceeds the value of its Bitcoin holdings, estimated at about $3.4 billion based on current prices. However, the gap between its peak valuation and current levels reflects a more cautious stance among investors.
Data from company disclosures and market trackers show that XXI holds more than 43,000 Bitcoin. The firm has not reported a new Bitcoin purchase in over nine months.
Strategic expansion beyond Bitcoin holdings
Tether’s acquisition aligns with a broader plan to reshape XXI into a vertically integrated Bitcoin business. The company has proposed a merger that would combine XXI with Strike, a payments platform founded by CEO Jack Mallers, and Elektron Energy, a Bitcoin mining operation.
Such a structure would link custody, payments, and mining within a single corporate entity. The proposal remains under discussion, and no final agreement has been confirmed.
Jack Mallers, who leads XXI, built his profile through Strike and advisory work during El Salvador’s adoption of Bitcoin as legal tender. His role places him at the center of the proposed expansion strategy.
SoftBank’s exit and early role
Tether described SoftBank’s departure as part of a natural transition rather than a rupture. The Japanese investment firm contributed early institutional backing and governance experience during XXI’s formation phase.
Paolo Ardoino, CEO of Tether, acknowledged that role in a statement tied to the announcement.
“SoftBank’s involvement gave XXI the kind of institutional depth that few early-stage companies ever have,” he said. “Their experience backing some of the most consequential technology companies in the world brought credibility.”
He added:
“They leave behind a company with a stronger foundation, a clearer mandate, and an ambitious path ahead.”
Financial disclosures suggest SoftBank may have exited at a loss. The firm originally paid about $999.3 million for its position. Recent valuations placed that stake closer to $711 million, based on prevailing share prices.
A defining moment for Tether’s Bitcoin strategy
Tether framed the acquisition as a sign of long-term commitment to XXI. In its announcement, the company stated that its conviction in the venture has deepened as it seeks to build a public company centered on Bitcoin.
The move arrives at a time when several firms on Wall Street pursue similar treasury strategies. Some competitors continue to expand their Bitcoin holdings through equity issuance and other financing tools.
XXI’s trajectory now depends on execution rather than initial positioning. Its early launch established scale in Bitcoin ownership. Its next phase will test whether a combined model across mining, payments, and custody can support sustained growth and restore investor confidence.
Tanya Petrusenko
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