Tether has announced a significant move to strengthen its influence over Twenty One Capital (XXI), a Bitcoin-buying enterprise that Tether co-founded last year. The stablecoin leader has acquired all shares held by Japanese investment firm SoftBank, which was one of XXI’s major initial investors. According to a recent SEC filing, the purchase includes 89.1 million shares, marking a complete divestment of SoftBank’s stake in the company.
Under an agreement established in June, SoftBank had invested approximately $999.3 million to acquire its position in XXI. However, the precise financial details of the recent transaction remain undisclosed. Reports suggest that SoftBank may face significant losses, as the valuation of its investment has dropped substantially. Current assessments place XXI’s valuation at around $711 million, with shares trading at approximately $7.98.
Despite seeing a nearly 5% increase in stock price on the day of the announcement, XXI’s shares are still down roughly 83% compared to this time last year. The stock previously reached a high of $53 before the firm’s merger with a special purpose acquisition company (SPAC) created by Cantor Fitzgerald.
Tether’s purchase embodies a robust endorsement of XXI, which is co-led by CEO Jack Mallers. The company has not reported any Bitcoin purchases in over nine months. In a statement, Tether CEO Paolo Ardoino emphasized the importance of SoftBank’s initial involvement, citing the institutional credibility SoftBank lent to XXI during its early stages.
As of now, XXI owns 43,514 Bitcoin, a position that has been incrementally increased since the firm’s inception. With Bitcoin prices hovering around $77,470 as of Wednesday, this stockpile is valued at nearly $3.4 billion, down from an earlier high of $5.4 billion recorded in October.
Amid these developments, XXI also made a filing revealing that SoftBank has requested the resignation of certain board members associated with the company. This includes a partner from the audit committee, which now faces challenges ensuring adequate independent representation per exchange regulations.
By December, Tether and SoftBank controlled 45.1% and 25% of XXI’s Class A stock, respectively. Additionally, Tether had a commanding 51.3% stake in Class B shares, which carry enhanced voting rights, whereas SoftBank held 29.2% of that category. This evolving landscape indicates Tether’s strategic maneuvers as it solidifies its control over XXI within the competitive Bitcoin landscape.
