SoftBank Reenters Crypto, Backing New Bitcoin Fund After $130M Loss in 2018
SoftBank, the Japanese investment powerhouse, is returning to the cryptocurrency space by supporting a new bitcoin investment venture, Twenty One Capital. This venture is backed by Tether, Bitfinex, and Cantor Fitzgerald, marking the company’s renewed interest in digital assets.
For many, SoftBank’s involvement in bitcoin signals growing institutional adoption of cryptocurrencies. With $308.7 billion in assets under management, SoftBank’s shift towards bitcoin is seen by some, including Jeff Park, head of alpha strategies at Bitwise, as an indication of mainstream acceptance of digital assets—comparable to a Japanese sovereign wealth fund taking a significant stake in the market.
However, for those who have followed SoftBank closely, this return to bitcoin might seem like déjà vu, reminiscent of the firm’s earlier missteps.
Back in 2019, SoftBank’s founder, Masayoshi Son, made headlines when he faced a substantial loss on a personal bitcoin investment. Son’s foray into cryptocurrency began in late 2017, when the market was riding high amid the ICO frenzy and bitcoin had reached an all-time peak of around $20,000. But by early 2018, as the market began to collapse, Son sold off his holdings, resulting in a reported $130 million loss, according to the Wall Street Journal.
Fast forward to today, and with bitcoin now trading at around $93,000, Son’s earlier loss could have turned into a significant profit had he held on. This leaves investors wondering: is this time going to be different?
One clue might lie in SoftBank’s recent involvement in the AI sector. In January, U.S. President Donald Trump announced that SoftBank would participate in a $100 billion effort to build AI infrastructure in partnership with OpenAI and Oracle (ORCL). At first glance, this appears to be a bullish signal for Oracle’s stock. However, since the announcement, Oracle shares have dropped by 28%, despite the broader Nasdaq index falling only 12% over the same period.
While several factors could explain Oracle’s underperformance—including macroeconomic pressures and geopolitical uncertainties—some analysts have connected this selloff to SoftBank’s involvement in the AI project. As Quinn Thompson, founder of crypto hedge fund Lekker Capital, put it in a post on X: “When SoftBank enters an asset you own, you sell. I don’t make the rules.”
As SoftBank reenters the crypto space with Twenty One Capital, investors are left to ponder whether this new venture will bring the same results as its previous attempt or whether it will represent a successful pivot into a burgeoning market. Only time will tell.
