Tether expands control of Twenty One after SoftBank exit

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Tether expands control of Twenty One

Highlights

Tether acquired SoftBank’s stake in Twenty One Capital, but the deal value was not disclosed.
SoftBank owned about 26% of Twenty One’s publicly traded shares, a stake valued at roughly $679 million.
Twenty One was created by Tether, SoftBank and an affiliate of Cantor Fitzgerald.

Tether strengthens control

Tether said it acquired SoftBank’s stake in Twenty One Capital, a publicly traded company that manages Bitcoin reserves. The amount paid was not disclosed. According to Bloomberg, SoftBank owned about 26% of Twenty One’s publicly traded shares, valued at roughly $679 million, while Tether controlled about 45% of the company before the purchase.

Tether also said that after the transaction closed, SoftBank’s representatives left Twenty One’s board under the shareholder agreement. That effectively strengthens Tether’s position as the controlling shareholder and makes it easier to push forward strategic decisions inside the company.

From Bitcoin treasury to broader platform

The deal came shortly after Tether proposed merging Twenty One with Strike, a platform for Bitcoin payments and financial services, and then with Elektron Energy, a major Bitcoin mining operator. The idea is to bring Bitcoin treasury operations, mining, financial services, lending, and capital markets under one public company.

Tether described the planned structure as a shift from simple Bitcoin exposure toward a company with operating businesses, recurring revenue sources, and long-term capacity to accumulate BTC. Strike would add consumer and financial products, while Elektron Energy would bring mining infrastructure. According to Tether, Elektron operates at about 50 EH/s, equal to roughly 5% of Bitcoin’s current network hashrate.

Treasury companies face a market test

Twenty One was created last April by Tether, SoftBank and an affiliate of Cantor Fitzgerald. At launch, the company managed about 42,000 BTC, or around $3.9 billion. At the time, public companies holding Bitcoin reserves were popular with investors, following the model of Michael Saylor’s Strategy. But after Bitcoin’s price decline, shares of many treasury companies fell even harder than the asset itself.

For Tether, buying SoftBank’s stake looks like a consolidation move during a weak period for the sector. If the mergers with Strike and Elektron go through, Twenty One could become more than a Bitcoin holder and turn into a broader public Bitcoin group. But the deal also highlights the risk in the model: investor interest in such companies remains heavily tied to BTC’s price and the market’s willingness to pay a premium for corporate Bitcoin reserves.

Earlier, we reported that Tether boosted USDT supply with a $2 billion mint on Ethereum.

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