Why did Tether buy SoftBank’s stake in Twenty One Capital?

Tether acquired SoftBank Group’s roughly 26% stake in Twenty One Capital to increase its control over the Bitcoin-focused financial firm. The move gives Tether greater influence over strategy, governance and future expansion plans.

What is Twenty One Capital?

Twenty One Capital is a publicly traded Bitcoin treasury company founded in 2025 by Jack Mallers with backing from Cantor Fitzgerald. The company holds Bitcoin on its balance sheet and plans to expand into lending, mining and capital markets services.

Why does this deal matter for the Bitcoin industry?

The acquisition strengthens Tether’s position in Bitcoin-focused financial infrastructure beyond stablecoins. It also signals that major crypto firms are trying to build vertically integrated businesses spanning treasury holdings, lending, payments and mining.

How did Twenty One Capital’s stock react to the news?

Shares of Twenty One Capital rose 4% after the announcement. However, the stock is still down around 37% since XXI began trading on the New York Stock Exchange following its merger with Cantor Equity Partners in December.

What risks do Bitcoin treasury companies face?

Bitcoin treasury firms are heavily exposed to Bitcoin price volatility because their core assets fluctuate with the market. When Bitcoin falls, these companies can struggle to raise fresh capital without diluting shareholders or increasing debt pressure.

Why is Twenty One Capital expanding beyond holding Bitcoin?

The company plans to diversify into Bitcoin lending, mining and capital markets to create additional revenue streams. Pure treasury models can become risky during market downturns because they depend heavily on Bitcoin price appreciation.

What does Tether gain from deeper control of Twenty One Capital?

Tether gains more influence over board decisions, long-term strategy and potential mergers or acquisitions. The deal could also strengthen links between Tether’s stablecoin ecosystem and Bitcoin-focused financial products.

What role does Jack Mallers play in Twenty One Capital?

Jack Mallers is the founder of Twenty One Capital and also leads Strike. He has been pushing to combine Bitcoin treasury operations with broader financial infrastructure and payments services.

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Tether tightens control over Bitcoin firm Twenty One

Written by Liezl GambePublished May 21, 2026, 12:20 AM

Tether has acquired SoftBank Group’s stake in Twenty One Capital, deepening the stablecoin issuer’s control over one of the largest publicly traded Bitcoin treasury firms.

Tether said it purchased SoftBank’s roughly 26% stake for an undisclosed amount, consolidating ownership of the company founded in 2025 by Jack Mallers with backing from Cantor Fitzgerald.

As part of the transaction, SoftBank representatives will step down from Twenty One Capital’s board, giving Tether greater influence over the company’s governance and strategic direction.

Twenty One Capital also outlined plans to expand beyond its Bitcoin treasury operations into Bitcoin lending, mining and capital markets services as competition intensifies among crypto-focused financial firms.

The ownership changes come as publicly traded Bitcoin treasury companies face growing pressure during market downturns because falling Bitcoin prices reduce asset values and make it harder to raise fresh capital without diluting shareholders.

Shares of Twenty One Capital rose 4% on Wednesday following the announcement, though the stock remains down 37% since XXI began trading on the New York Stock Exchange after its merger with Cantor Equity Partners in December.

Earlier this year, Tether said it planned to support a proposed merger between Twenty One Capital and Mallers’ payments company Strike, alongside a potential combination with Bitcoin miner Elektron Energy.

At the time of reporting, Bitcoin price was $77,565.21.