Why Did Tether Increase Its Commitment to Twenty One?

Tether International has acquired SoftBank’s stake in Twenty One Capital, tightening its control over one of the largest public Bitcoin treasury companies and removing a major early-stage backer from the board.

SoftBank’s representatives stepped down from Twenty One’s board of directors after the transaction closed, in line with the company’s shareholder agreement, Tether said Wednesday. The terms of the stake purchase were not disclosed.

The move gives Tether a larger role in the direction of Twenty One at a time when the company is trying to build a public-market vehicle around Bitcoin ownership, financial services, and related operating businesses. Tether said the transaction reflects the continued development of Twenty One as it advances its long-term Bitcoin strategy.

“This transaction reflects the continued development of XXI as the company builds on its foundation and advances its long-term Bitcoin strategy,” Tether said in a statement. “Tether’s increased commitment reflects its conviction that XXI represents one of the most important opportunities to build a public company around Bitcoin from the ground up.”

Twenty One shares rose 5.6% to $8.05 in pre-market trading Wednesday after the announcement, according to TradingView.

What Does SoftBank’s Exit Change?

SoftBank was one of the initial backers of Twenty One, alongside Tether and Cantor Fitzgerald, when Strike founder Jack Mallers was announced as the venture’s CEO in April 2025. Its exit removes a high-profile institutional investor from the board, but Tether framed the change as part of the company’s development rather than a reversal in the business plan.

Tether CEO Paolo Ardoino credited SoftBank with giving Twenty One early institutional support during its formation period.

“SoftBank’s involvement gave XXI the kind of institutional depth that few early-stage companies ever have,” Ardoino said. “Its experience backing some of the most consequential technology companies in the world brought credibility, perspective, and discipline to XXI during a critical period of formation. They leave behind a company with a stronger foundation, a clearer mandate, and an ambitious path ahead.”

The board change leaves Twenty One more closely aligned with Tether’s Bitcoin-focused strategy. It also reduces the mix of large strategic shareholders involved in the company’s next stage, which could matter as Twenty One pursues a broader merger plan and tries to differentiate itself from other public Bitcoin treasury companies.

Investor Takeaway

Tether’s purchase of SoftBank’s stake shifts Twenty One closer to a founder-and-strategic-sponsor model built around Bitcoin. The transaction does not change Twenty One’s Bitcoin exposure by itself, but it gives Tether a larger role as the company pursues a more ambitious public-market structure.

How Does the Merger Plan Fit Into the Strategy?

The stake purchase comes after Tether proposed a multi-step plan last month to merge Twenty One with Strike’s Bitcoin financial services platform and Bitcoin miner Elektron Energy. That plan would combine Bitcoin holdings, payments infrastructure, and mining exposure under one public-company structure.

For Twenty One, the proposed combination would move the company beyond a pure treasury model. Public Bitcoin treasury companies are often valued on their Bitcoin holdings, balance sheet structure, issuance strategy, and ability to raise capital. By adding operating businesses, Twenty One would be trying to present itself as more than a passive holder of Bitcoin.

The strategy also places the company in closer comparison with Michael Saylor’s Strategy, the largest public corporate holder of Bitcoin. Twenty One is the second-largest public company holder of Bitcoin, with 43,514 BTC, worth about $33.7 billion, according to The Block’s Bitcoin Treasury Tracker. Strategy holds 843,738 BTC, worth about $65.3 billion.

That comparison is central to the market reaction. Investors are likely to measure Twenty One by its Bitcoin holdings, its premium or discount to underlying assets, its access to capital, and whether the planned combination with Strike and Elektron Energy can create an operating story that supports the treasury strategy.

What Are the Market Implications?

Tether’s deeper involvement gives Twenty One a stronger link to one of the most profitable and influential firms in the crypto market. It also raises the stakes for execution. A public company built around Bitcoin from inception needs more than a large treasury; it needs governance, financing discipline, custody controls, investor communications, and a clear plan for how operating businesses support the balance sheet.

SoftBank’s exit may simplify control, but it also removes a global technology investor from the boardroom. That makes Tether’s role more visible and places more responsibility on the remaining leadership to show that Twenty One can convert its Bitcoin-centered structure into a durable public-market company.

The next test for Twenty One will be whether the proposed merger with Strike and Elektron Energy advances smoothly and whether the market treats the company as a differentiated Bitcoin platform rather than another balance sheet proxy for BTC.