Tether Investments acquired SoftBank Group's entire 26% stake in Twenty One Capital (NYSE: XXI) on May 20, 2026, removing the last major outside ownership bloc from the publicly listed Bitcoin treasury firm. The transaction, which covered 89.1 million shares, gives Tether uncontested control of a...
"We want to build the premier Bitcoin company." — Jack Mallers, CEO, Twenty One Capital
Tether Investments acquired SoftBank Group's entire 26% stake in Twenty One Capital (NYSE: XXI) on May 20, 2026, removing the last major outside ownership bloc from the publicly listed Bitcoin treasury firm. The transaction, which covered 89.1 million shares, gives Tether uncontested control of a vehicle holding approximately 43,514 BTC valued at $3.4 billion. SoftBank's board representatives stepped down at closing.
The buyout follows Tether's April 29 proposal to merge XXI with Strike, Jack Mallers' Bitcoin payments platform, and Elektron Energy, a Bitcoin mining operation. If completed, the combined entity would create a vertically integrated, publicly traded Bitcoin conglomerate spanning treasury management, mining, lending, financial services, and capital markets — all controlled by the world's largest stablecoin issuer.
Tether did not disclose terms. Bloomberg data indicates SoftBank's position was worth approximately $679 million at the time of sale, against an original cost basis of $999.3 million paid in June 2025 — implying a roughly 32% loss for SoftBank on the investment.
Tether purchased all 89.1 million shares held by SoftBank Group, according to company disclosures filed May 20. The deal removes the Japanese conglomerate's representatives from XXI's board in accordance with the shareholder agreement established at the firm's SPAC listing in December 2025.
Key deal parameters:
| Metric | Value | |--------|-------| | Shares transferred | 89.1 million | | SoftBank stake (% of outstanding) | ~26% | | SoftBank's original cost basis | $999.3 million | | Position value at time of sale (Bloomberg) | ~$679 million | | Implied loss to SoftBank | ~$320 million (32%) | | XXI stock price (May 22) | $7.70 | | XXI market capitalization | $4.98 billion |
The structure leaves Tether as the dominant shareholder of a NYSE-listed vehicle, providing it with access to U.S. public equity markets without directly listing its own operations. Cantor Fitzgerald remains involved as a financial partner.
Following the transaction, Tether's combined direct and indirect Bitcoin exposure represents one of the largest concentrated positions in the asset's history. CEO Paolo Ardoino stated in late April that Tether controls "more than 130,000 to 140,000 Bitcoin" across all entities.
Direct holdings (Tether treasury): Approximately 97,000+ BTC visible on-chain, according to Arkham Intelligence tracking. Tether added 8,888.8 BTC ($778 million) on January 1, 2026, as part of its Q4 2025 profit allocation, and continued purchasing through April, when on-chain wallets exceeded 97,000 BTC.
Indirect holdings (Twenty One Capital): 43,514 BTC on the XXI balance sheet.
Combined estimated total: 130,000–140,000 BTC, per Ardoino's public statements. At $78,000 per BTC, this represents approximately $10.1–$10.9 billion in Bitcoin exposure.
For context, Strategy Inc. (formerly MicroStrategy) holds 843,738 BTC as of May 18, 2026, acquired for $63.9 billion at an average price of $75,700. Tether's combined position is approximately 16–17% of Strategy's holdings by quantity, but with a critical difference: Tether self-funds through stablecoin operational profits rather than issuing equity or convertible debt.
On April 29, 2026, Tether proposed merging Twenty One Capital with two additional entities:
Strike — A Bitcoin payments and lending platform founded by Jack Mallers (who also serves as XXI CEO). Strike operates in 100+ countries, secured a New York BitLicense in March 2026, and obtained a $2.1 billion credit facility for its bitcoin-backed lending business. The platform enables buying, selling, holding, and borrowing against Bitcoin.
Elektron Energy — A Bitcoin mining operation. Limited public financial data is available on this entity.
If approved, the combined firm would operate under the XXI ticker and consolidate the following business lines:
XXI shares rose approximately 8% in after-hours trading following the merger proposal announcement. The structure mirrors a conglomerate model: revenue-generating operations (mining, lending, payments) paired with a balance-sheet asset (BTC holdings), all controlled by a cash-rich parent (Tether).
Tether reported $1.04 billion in net profit for Q1 2026, driven primarily by interest income on its $141 billion in U.S. Treasury holdings that back USDT in circulation. The company's equity buffer reached a record $8.23 billion.
Tether allocates up to 15% of quarterly profits to Bitcoin purchases. This mechanism effectively converts U.S. government bond yields — earned on reserves backing a $189.8 billion stablecoin — into Bitcoin accumulation. The flywheel operates as follows:
The economic structure creates a one-way accumulation ratchet: as long as USDT circulation grows or remains stable, Tether generates income that funds further Bitcoin purchases without selling existing holdings. Q1 2026 reserve composition showed $6.6 billion in Bitcoin alongside $19.8 billion in gold, $15.8 billion in secured loans, and $3.4 billion in public equities.
The Bitcoin treasury company landscape has consolidated into a two-player race:
| Metric | Strategy (MSTR) | Twenty One Capital (XXI) | |--------|-----------------|--------------------------| | BTC Holdings | 843,738 | 43,514 | | Market Cap | $57.88 billion | $4.98 billion | | Avg. Cost per BTC | $75,700 | Not disclosed | | Funding Mechanism | Equity + convertible debt | Parent company (Tether) profits | | Operating Revenue | Software (legacy) | Proposed: mining + lending + payments | | CEO | Michael Saylor | Jack Mallers |
Strategy remains dominant by an order of magnitude. However, the structural differences matter. Strategy funds acquisitions by diluting shareholders or issuing debt instruments; XXI is backed by a parent company generating $4+ billion in annual profit. Strategy has signaled a target of 1 million BTC; its most recent purchase was 24,869 BTC for $2.01 billion on May 18.
XXI's differentiation lies in the proposed merger thesis: rather than a pure treasury vehicle, the combined entity would generate operating revenue from mining, lending, and payments. This addresses the core critique of treasury-only models — that they produce no cash flow independent of the underlying asset's price appreciation.
The SoftBank exit raises concentration questions. A single private entity — Tether — now exerts control over:
This vertical integration creates systemic linkages. A stress event affecting Tether's stablecoin operations could cascade into XXI's stock price, Strike's lending book, and Elektron's mining operations. Conversely, a severe Bitcoin drawdown would impair Tether's reserve buffer (currently $8.23 billion against $183.5 billion in liabilities — a 4.5% cushion).
Regulatory scrutiny is relevant context: Tether disclosed in its Q1 2026 attestation that a full audit has "formally commenced" for the first time, conducted by BDO Advisory Services under the ISAE 3000R standard. The GENIUS Act stablecoin legislation moving through the U.S. Senate could impose new reserve and transparency requirements on issuers of Tether's scale.
The SoftBank buyout represents a clarification of ownership rather than a strategic pivot. Tether has signaled since late 2025 that it intends to use Twenty One Capital as its primary public-market Bitcoin vehicle. The removal of SoftBank simplifies governance and positions the three-way merger for shareholder approval without a competing bloc.
The broader implication is structural. Tether has built a capital formation loop — stablecoin issuance generates Treasury yield, Treasury yield funds Bitcoin purchases, Bitcoin holdings accrue in a public company — that operates independently of capital market conditions. Whether this represents prudent treasury management or excessive concentration in a single private entity's hands depends on one's view of counterparty risk. The data, at minimum, shows the position is growing.