Japanese investment giant SoftBank is dipping its toes back into crypto by backing a new bitcoin (BTC) investment vehicle, Twenty One Capital, in conjunction with Tether, Bitfinex, and Cantor Fitzgerald.

For some, the SoftBank Group—which has $308.7 billion assets under management—taking an interest in bitcoin is a welcome development and another sign of mounting institutional crypto adoption. After all, SoftBank functions more or less like a Japanese sovereign wealth fund, according to Jeff Park, head of alpha strategies at Bitwise.

But for seasoned observers, it could be more of a déjà-vu than a breakthrough.

Flashback to 2019, SoftBank made headlines when its founder, Masayoshi Son, took a gigantic loss on a personal bitcoin investment.

Son had taken exposure to cryptocurrency in late 2017, when the ICO mania was at its peak and bitcoin was trading at an all-time high of around $20,000.

With bitcoin now trading at $93,000, Son’s investment would have been very profitable had he held on. But he sold in early 2018 as bitcoin began to crash, resulting in a $130 million loss, according to the Wall Street Journal.

So the question investors could be asking themselves now is, would this time be different?

To find a clue, let’s take Oracle (ORCL) stock as an example. Recently, U.S. President Donald Trump announced that SoftBank would be part of a $100 billion push to build AI infrastructure in the U.S. in conjunction with OpenAI and Oracle (ORCL).

One would say this is a bullish outcome for ORCL stock. However, since the announcement was made on Jan. 22, coinciding with ORCL topping at $188 per share, the stock fell 28%, while the Nasdaq has gone down 12% in the same period of time.

Other outside factors, including macro headwinds and geopolitical tension, could explain the underperformance. It could also be just a plain coincidence. However, one analyst tied this Oracle selloff to Softbank’s involvement in the AI infrastructure project.

“When SoftBank enters an asset you own, you sell. I don’t make the rules,” Quinn Thompson, founder of crypto hedge fund Lekker Capital, wrote in a post on X, citing the Oracle pullback.

Cantor Fitzgerald is reportedly stepping into the Bitcoin investment arena with plans to launch a $3 billion digital asset venture, Financial Times reported on April 23.

The initiative is backed by heavyweight partners, including stablecoin issuer Tether, SoftBank, and crypto platform Bitfinex.

21 Capital

The venture, named 21 Capital, will use $200 million in seed funding secured by Cantor Equity Partners in January.

Brandon Lutnick, son of US Commerce Secretary Howard Lutnick, leads the effort. The company aims to mirror the Bitcoin-focused process that turned MicroStrategy, now rebranded as Strategy, into a dominant force in the market.

Unlike Strategy, which bought Bitcoin directly to build its holdings, 21 Capital will start with contributions from its founding partners. Tether is expected to provide $1.5 billion worth of Bitcoin. SoftBank will add $900 million, and Bitfinex will contribute $600 million.

Beyond these initial assets, 21 Capital also plans to raise another $550 million. This will include $350 million from convertible bonds and $200 million through private equity. The fresh capital will go toward further Bitcoin acquisitions, positioning the firm to compete with existing public companies holding large crypto reserves.

To support its operations, Cantor Fitzgerald has brought on Copper and Anchorage Digital to manage custody and collateral. The goal is to offer secure, Bitcoin-backed financing solutions tailored to institutional investors.

Institutional demand for Bitcoin grows

This venture underlines a rising trend of traditional financial institutions deepening their exposure to digital assets.

Cantor Fitzgerald’s move mirrors the shift that made Strategy a top stock performer by providing investors with indirect Bitcoin exposure.

Strategy currently holds over 534,000 BTC, valued at nearly $50 billion, making it the largest corporate holder of the top crypto asset.

Meanwhile, SoftBank’s participation in 21 Capital also signals a renewed bet on Bitcoin.

VanEck’s Mathew Sigel pointed out that the firm’s CEO, Masayoshi Son, reportedly lost over $130 million after a poorly timed $200 million BTC investment in 2017.

This time, however, SoftBank appears committed to the long term. Earlier in the year, it invested $50 million in Cipher Mining and entered negotiations to support high-performance computing infrastructure, although the deal fell through.

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