Tether Buys Out SoftBank’s Stake in XXI, Bolsters Bitcoin Treasury Control

Tether International has acquired the entirety of SoftBank's stake in Twenty One Capital (XXI), the Bitcoin treasury firm co-founded by Tether and Strike CEO Jack Mallers in April 2025. The transaction, confirmed on May 20 via a Tether statement and an SEC filing, marks a significant consolidation of power in the Bitcoin corporate treasury space.

SoftBank originally invested $999.3 million for its position in June 2025, but the stake's value had since fallen to around $711 million, with shares trading at $7.98. The exact financial terms of the buyout were not disclosed, but the move effectively ends SoftBank's involvement in XXI, with its board representatives stepping down immediately.

Strategic Implications of Tether’s Buyout

By absorbing SoftBank's stake, Tether deepens its commitment to Bitcoin as a treasury asset. Tether already held 45.1% of XXI's Class A stock and 51.3% of Class B stock (which carries outsized voting power) as of December 2025. The acquisition eliminates a major external shareholder and gives Tether near-complete control over XXI's strategic direction. This could accelerate Bitcoin accumulation and integration with Tether's stablecoin operations.

The buyout also removes SoftBank's influence from XXI's board, including its audit committee. The filing notes that the committee now has fewer independent members than NYSE rules require, and XXI plans to appoint a new qualifying member promptly. This governance gap may raise eyebrows among institutional investors, but Tether's dominant position likely mitigates immediate concerns.

Market Reaction and Stock Performance

XXI's stock rose nearly 5.6% to $8.05 in pre-market trading on May 20 following the announcement. Despite the gain, shares remain down 83% from a peak of $53 reached before the company's public listing. The muted recovery reflects ongoing skepticism about Bitcoin treasury firms' valuations amid volatile crypto markets. However, Tether's increased ownership could stabilize the stock by reducing uncertainty around corporate governance.

The broader context includes Tether's aggressive push into Bitcoin and stablecoin infrastructure. Separately, digital assets platform Fireblocks launched an AI agent payment suite on the same day, aiming to scale stablecoin adoption through machine-to-machine transactions. Fireblocks joined the x402 Foundation alongside Google, Microsoft, and Visa, signaling growing institutional interest in programmable payments. Tether's consolidation of XXI aligns with this trend, positioning the firm to leverage Bitcoin as a settlement layer for AI-driven commerce.

Regulatory Landscape

The acquisition comes amid shifting regulatory tides. Japan's Financial Services Agency finalized rules on May 19 allowing foreign-issued trust-type stablecoins to operate as regulated payment instruments from June 1. This opens a new market for Tether's USDT in Japan, potentially boosting demand for Bitcoin as a reserve asset. Meanwhile, the US Senate Banking Committee advanced the CLARITY Act, which aims to clarify crypto regulatory jurisdiction. Tether's increased control over XXI could help navigate these evolving rules by centralizing compliance efforts.

SoftBank's exit may also reflect a broader recalibration of its crypto strategy. The Japanese conglomerate has faced losses on other crypto investments and may be refocusing on AI and tech infrastructure. For Tether, the buyout represents a vote of confidence in Bitcoin's long-term value and its own role as a dominant player in the digital asset ecosystem.

Key Takeaways

1. Tether acquires SoftBank's entire stake in Bitcoin treasury firm XXI, consolidating control.
2. SoftBank's board representatives resign, leaving audit committee short of independent members.
3. XXI stock rose 5.6% but remains 83% below its peak.
4. Acquisition aligns with Tether's strategy to integrate Bitcoin with stablecoin and AI payment infrastructure.
5. Regulatory developments in Japan and the US could further benefit Tether's expanded role.

Sources: Tether Statement, SEC Filing, CoinMarketCap Academy, CoinMarketCap Academy - Fireblocks, CoinMarketCap Academy - Japan Stablecoins.