Tether and SoftBank Launch Bitcoin Investment Venture

Tether, a leading stablecoin issuer, and SoftBank Group are key figures in launching “Twenty One.” This venture coincides with Masayoshi Son’s renewed interest in cryptocurrency.

The collaboration, joined by Cantor Fitzgerald’s SPAC arm, aims to redefine institutional Bitcoin holdings. This launch makes Twenty One the world’s third-largest public Bitcoin treasury.

The venture’s launch is anticipated to elevate demand for Bitcoin, potentially contracting exchange supply. Market observers expect this large-scale shift to emulate previous MicroStrategy effects on Bitcoin’s valuation.

With over $3 billion in commitments, Bitcoin markets could experience heightened liquidity. Analysts see potential for enhanced stability, fostering Bitcoin as a macroeconomic hedge within institutional portfolios. Alva Analysts emphasizes, “This 21 Capital play is all about building the rails for institutional BTC. It’s a coordinated, risk-diversified push. If they pull it off, expect new flows, more stable prices, and a reinforced BTC-as-macro-hedge narrative.”

Similar corporate Bitcoin endeavors, like MicroStrategy’s 2020 move, led to substantial market shifts. Historical parallels suggest this new venture could influence Bitcoin’s price trajectory.

Experts caution about potential market volatility linked with large acquisitions. Ryan Watkins warns of “bubble behavior” and “future market unwindings,” echoing concerns seen in prior asset accumulations.