Tether Acquires SoftBank Stake in Twenty One Capital Amid Bitcoin Treasury Market Shakeout

Tether has acquired SoftBank Group’s ownership stake in Twenty One Capital, deepening its control over the Bitcoin-focused investment firm as it pursues a broader restructuring strategy involving crypto trading and mining businesses.

The financial terms of the transaction were not disclosed. Based on Bloomberg-compiled data, SoftBank’s stake represented approximately 26% of Twenty One’s publicly traded shares, a position valued at roughly $679 million before the acquisition.

Prior to the deal, Tether already held around 45% of the company, while affiliate iFinex controlled an additional 17%. Shares of Twenty One rose in pre-market trading following news of the acquisition.

Consolidation Strategy Around Bitcoin Infrastructure

The move follows Tether’s proposal last month to merge Twenty One with Strike and Elektron Energy, signaling an effort to consolidate infrastructure across multiple segments of the digital asset ecosystem.

Strike CEO Jack Mallers also leads Twenty One, further aligning the companies operationally as Tether expands its influence across Bitcoin-related financial services, payments, and mining infrastructure.

The acquisition reflects a broader shift in market dynamics as crypto firms increasingly pursue vertical integration strategies amid pressure on standalone Bitcoin treasury models.

Declining Appeal of the Bitcoin Treasury Model

Twenty One was originally established in April last year through a partnership involving Tether, SoftBank, and an affiliate of Cantor Fitzgerald during the height of institutional enthusiasm for Bitcoin treasury companies.

The model, inspired by Strategy and its aggressive Bitcoin accumulation strategy under Michael Saylor, gained traction as companies sought to boost balance sheets through cryptoasset exposure during the bull market cycle.

However, sentiment around the model has weakened significantly over the past year as Bitcoin price volatility and declining treasury valuations pressured publicly listed firms heavily exposed to digital assets.

Twenty One shares have fallen more than 80% from their all-time peak, while several crypto treasury-focused firms have either scaled back operations or pivoted toward alternative business models.

Financial Pressure and Shrinking Digital Asset Holdings

According to a recent filing, Twenty One held approximately $3 billion in digital assets at the end of March, down from the $3.9 billion in Bitcoin it managed at launch.

The company also reported a net loss of $859.7 million during the first quarter of 2026, underscoring the financial strain facing firms built primarily around Bitcoin balance sheet exposure during periods of market contraction.

The broader decline in the treasury accumulation narrative has pushed companies to explore more diversified operational models tied to trading infrastructure, payments, mining, and stablecoin ecosystems.

Tether’s Expanding Strategic Footprint

The acquisition further expands Tether’s influence beyond stablecoin issuance and into broader crypto market infrastructure.

The company remains the issuer of Tether, the world’s largest stablecoin, with approximately $190 billion in circulation. According to reserve disclosures, Tether held around $6.6 billion worth of Bitcoin within USDT reserves at the end of March.

Tether has also been increasing its regulatory and operational footprint in the United States. Last year, the company launched a U.S.-focused stablecoin, USAT, designed to align with emerging American stablecoin regulatory requirements.

The initiative is reportedly being led by Bo Hines, a former White House crypto official under the administration of Donald Trump.

Market Implications

The transaction highlights a broader consolidation phase underway across the digital asset sector, particularly among firms built around Bitcoin treasury strategies that flourished during earlier market cycles.

As capital markets become less receptive to pure Bitcoin accumulation plays, companies are increasingly shifting toward integrated infrastructure models spanning stablecoins, trading, settlement, mining, and payment systems.

For Tether, the acquisition strengthens its positioning not only as a stablecoin issuer but as an increasingly influential player across the wider Bitcoin financial infrastructure stack.