SoftBank’s Masayoshi Son launches a $3.6 billion Bitcoin investment vehicle, Twenty One Capital, with Cantor Fitzgerald. Aiming to mimic MicroStrategy’s success, Twenty One expects to start with over 42,000 Bitcoins from Tether and Bitfinex. They plan to raise $585 million via bonds and equity, but the SPAC’s structure raises concerns about the venture’s likelihood of success.
SoftBank is diving headfirst into the volatile world of cryptocurrency, now backing a new venture that aims to capitalise on the booming Bitcoin market. The company’s head honcho, Masayoshi Son, is eyeing a hefty $3.6 billion deal through a shell company called Twenty One Capital, tied to Cantor Fitzgerald. The ambition? To replicate the success of MicroStrategy, which has gained notoriety for its significant Bitcoin holdings worth around $90 billion.
On April 23, SoftBank and a consortium of partners announced their intention to launch a Bitcoin investment platform. Twenty One Capital is to receive contributions in Bitcoin from Tether—the stablecoin titan—and Bitfinex, a major cryptocurrency exchange. The venture is expected to kick off with around 42,000 Bitcoins, pegging the startup at a valuation of $3.6 billion based on current digital currency prices.
But it’s not all smooth sailing. The plan includes raising an additional $585 million via attractive convertible bonds and equity financing. Investors will be crucial in backing the purchase of more Bitcoin and other potential initiatives. Still, the curious setup of this SPAC (Special Purpose Acquisition Company) raises questions about its long-term viability, especially with the shadow of high-risk investments looming large.
As the crypto market fluctuates, SoftBank’s decision to invest in this risky domain will be one to watch. With a strategy that could yield massive returns or spectacular losses, only time will tell if the gamble pays off. The coming months will reveal whether Twenty One Capital can successfully navigate this unpredictable arena and stand alongside giants like MicroStrategy.
