Tether International has finalized the acquisition of SoftBank’s equity in Twenty One Capital (XXI). This development sees SoftBank’s representatives departing from the Twenty One board of directors, as confirmed by the controlling shareholder. The move signifies Tether’s amplified commitment to XXI, viewing it as a significant venture for establishing a publicly traded entity centered around Bitcoin.
Key Takeaways
- Tether International has acquired SoftBank’s stake in Twenty One Capital.
- SoftBank’s board representatives have resigned following the transaction.
- Tether expressed conviction in Twenty One’s potential to build a public Bitcoin-focused company.
- Twenty One Capital’s share price saw an increase in pre-market trading following the announcement.
- Tether previously proposed a multi-step plan to merge Twenty One with Strike’s bitcoin services and Elektron Energy.
- Twenty One Capital is the second-largest public company holder of Bitcoin.
The acquisition underscores a strategic deepening of Tether’s involvement with Twenty One Capital, a company focused on developing its long-term Bitcoin strategy. Tether’s increased commitment is presented as a testament to its belief in XXI’s capacity to construct a public company from the ground up, with Bitcoin as its core asset. Following the news, Twenty One Capital’s stock experienced a notable rise of 5.6% in pre-market trading.
SoftBank Group was an initial investor in Twenty One Capital, alongside Tether and Cantor Fitzgerald, when Strike founder Jack Mallers was appointed CEO in April 2025. Tether’s CEO, Paolo Ardoino, acknowledged SoftBank’s contribution, stating that its institutional expertise provided crucial credibility, perspective, and discipline during the company’s formative stages. SoftBank’s exit leaves Twenty One with what Tether describes as a stronger foundation and a clearer strategic direction.
This transaction follows a proposed merger plan from Tether last month. The plan outlines a multi-step process to integrate Twenty One Capital with Strike’s bitcoin financial services platform and the bitcoin mining operation, Elektron Energy. Within the cryptocurrency market, Twenty One Capital holds a significant position as the second-largest public company owner of Bitcoin, possessing 43,514 BTC, valued at approximately $33.7 billion. This holding places it behind only MicroStrategy, which holds 843,738 BTC, valued at $65.3 billion.
Regulatory Implications and Precedents
The acquisition by Tether, a major stablecoin issuer that has faced significant regulatory scrutiny itself, introduces an interesting dynamic to the evolving landscape of public companies focused on digital assets. While this specific transaction is primarily a private equity transfer and board restructuring, it occurs within a broader global context of increasing regulatory attention on crypto-related financial services and companies holding significant Bitcoin reserves. Regulatory bodies worldwide are actively developing frameworks, such as the Markets in Crypto-Assets (MiCA) regulation in Europe, to govern the crypto industry. The legal stakes for entities like Twenty One Capital, and by extension Tether, involve ensuring compliance with existing financial regulations and anticipating future regulatory shifts. The emphasis on building a “public company around Bitcoin” suggests a move towards greater transparency and adherence to traditional financial market standards, potentially setting precedents for how such businesses are structured and overseen. The involvement of a company like Tether, with its own regulatory history, adds complexity, as its actions could be viewed through the lens of its existing compliance obligations and relationships with financial authorities.
Original article : www.theblock.co