SoftBank Returns to Bitcoin via Twenty One Capital Amid Mixed Reactions

Japanese investment giant SoftBank is re-entering the crypto scene by backing a new Bitcoin investment vehicle, Twenty One Capital, alongside major players like Tether, Bitfinex, and Cantor Fitzgerald. The move signals growing institutional interest in Bitcoin, with SoftBank—managing over $308.7 billion in assets—often viewed as operating like a de facto Japanese sovereign wealth fund, according to Bitwise’s Jeff Park.

While some view this as a bullish signal for institutional crypto adoption, others remember SoftBank’s earlier foray into crypto that ended poorly. In 2017, during the peak of the ICO boom, SoftBank founder Masayoshi Son bought into Bitcoin near its all-time high of $20,000. He exited early in 2018 as prices plunged, incurring a $130 million loss. Had he held on, with Bitcoin now trading around $93,000, the outcome would’ve been vastly different.

SoftBank’s reentry has drawn comparisons to other recent investments, including its involvement in a $100 billion U.S. AI infrastructure initiative alongside Oracle and OpenAI, announced by former President Donald Trump in January. Despite the hype, Oracle’s (ORCL) stock has fallen 28% since that announcement, underperforming the Nasdaq, which is down 12% in the same period.

This has prompted skepticism from some market watchers. Crypto hedge fund Lekker Capital’s founder Quinn Thompson remarked, “When SoftBank enters an asset you own, you sell,” pointing to the Oracle downturn following SoftBank’s involvement.

As SoftBank steps back into Bitcoin, investors are left wondering: is this the beginning of a smarter, more strategic crypto move—or will history repeat itself? Either way, the entry of such a heavyweight into the Bitcoin market is sure to keep traders and analysts watching closely.