- SoftBank, Tether, Bitfinex, and Cantor start 21 Capital with $3B in Bitcoin, with SoftBank investing $900M.
- 21 Capital will go public through SPAC, converting Bitcoin into stock worth $10 per share, with Bitcoin being worth $85,000.
- Masayoshi Son’s largest Bitcoin gamble comes after a loss of $130M in 2017 and an investment in Cipher Mining for $50M.
Japanese firm SoftBank is teaming up with Tether, Bitfinex, and Cantor Fitzgerald to launch a new business called 21 Capital.
The venture will start with $3 billion of Bitcoin. It will inject $900 million to purchase Bitcoin at $85,000 an ounce. Tether will supply $1.5 billion and Bitfinex will supply $600 million.
21 Capital’s Bitcoin Plan
The plan is for 21 Capital to go public through a SPAC listing., a means of raising capital and becoming public.
SoftBank and its collaborators intend to convert the Bitcoin into shares of 21 Capital at $10 per share, where Bitcoin is trading at $85,000 per coin.
SoftBank’s Bitcoin History
This is SoftBank’s major Bitcoin investment, spearheaded by Masayoshi Son. In 2017, Son himself acquired $200 million in Bitcoin but subsequently sold it, losing more than $130 million. Earlier this year, it invested $50 million in Cipher Mining, purchasing approximately 10.4 million shares, which is approximately 3% of the firm.
It also signed up for a month long exclusive negotiation for data center space with Cipher Mining, but it remained unfinished.
Matthew Sigel of VanEck called this Son’s largest Bitcoin wager to date. He indicated, that it may be connecting Bitcoin with AI and energy plans.
SoftBank’s move could prompt other large firms to invest in Bitcoin. The transaction is not complete and may be altered, but an announcement will be made soon.
Also Read: SEC Takes Legal Action Against Crypto Executive in Alleged $198 Million Scam
