SoftBank is making a notable return to the cryptocurrency arena by investing in Twenty One Capital, a new Bitcoin-focused investment firm. This venture is a collaboration with Tether, Bitfinex, and Cantor Fitzgerald, and is structured through a SPAC merger with Cantor Equity Partners. Twenty One Capital is set to launch with over 42,000 bitcoins, valued at approximately $3.6 billion, positioning it as one of the largest corporate holders of Bitcoin globally.
This move is reminiscent of SoftBank’s previous foray into Bitcoin, where founder Masayoshi Son incurred a $130 million loss after buying at the market’s peak in 2017 and selling during the subsequent downturn in 2018 . Now, with Bitcoin trading at significantly higher levels, SoftBank’s renewed interest raises questions about whether this time will yield different results.
Twenty One Capital aims to emulate the strategy of MicroStrategy by using financial engineering to acquire more Bitcoin, thereby increasing its holdings and potentially its stock valuation. However, this approach carries inherent risks, especially considering the volatile nature of cryptocurrency markets and the complex financial structures involved.
In parallel, SoftBank is also investing heavily in artificial intelligence infrastructure through the Stargate project, a joint venture with OpenAI and Oracle, announced by President Donald Trump. The initiative plans to invest up to $500 billion in AI infrastructure in the United States, with an initial $100 billion deployment . Despite the ambitious scope, some analysts have expressed skepticism about the potential returns and the impact on companies like Oracle, whose stock has experienced a decline since the announcement .
SoftBank’s aggressive investment strategies in both cryptocurrency and AI reflect its commitment to staying at the forefront of technological innovation. However, these moves also underscore the importance of cautious optimism, given the historical precedents and the speculative nature of these markets.
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