SoftBank, a major Japanese investment company, is returning to the cryptocurrency scene by funding a new bitcoin investment firm, Twenty One Capital, alongside Tether, Bitfinex, and Cantor Fitzgerald.
This marks a significant re-engagement with crypto for SoftBank, which manages assets worth approximately $308.7 billion. The company’s renewed interest comes after Masayoshi Son, the founder, previously incurred a $130 million loss on bitcoin years ago.
Recent developments show that SoftBank’s interest in bitcoin aligns with a broader trend of institutional adoption in the crypto market. This follows a surprising $2.4 billion quarterly loss for SoftBank and its new role in a $100 billion U.S. AI infrastructure initiative.
The question many investors might be asking is whether SoftBank’s involvement this time will lead to better outcomes compared to its earlier experience.
To further illustrate this, recall that back in 2018, Son sold his bitcoin holdings when the value began to decline, leading to a significant financial setback. With current bitcoin prices around $93,000, his decision to sell early is under scrutiny. Investors are now left wondering: might this time be different?
Further context comes from a recent announcement where U.S. President Donald Trump indicated that SoftBank would participate in a $100 billion initiative to boost U.S. AI infrastructure, raising questions about its potential impacts on stock prices, including Oracle’s (ORCL) performance.
In conclusion, industry experts suggest that investors need to be cautious about the implications of SoftBank’s return to crypto investing.
