SoftBank Reinvests in Bitcoin After Major Loss—Is This the Right Time for a Comeback?
SoftBank, the Japanese investment powerhouse, is making another foray into the world of cryptocurrencies by backing a new bitcoin investment vehicle called Twenty One Capital. This marks SoftBank’s return to the space after a significant loss suffered by its founder, Masayoshi Son, following his previous involvement in bitcoin.
For many in the crypto world, SoftBank’s renewed interest in bitcoin is a sign that institutional support for digital assets is continuing to grow. With a staggering $308.7 billion in assets under management, SoftBank’s participation adds legitimacy to the sector, according to Jeff Park, head of alpha strategies at Bitwise. The firm’s involvement in this space is seen by many as another step toward mainstream acceptance of cryptocurrencies.
However, for those familiar with SoftBank’s past, this move may feel more like déjà vu.
In 2019, Masayoshi Son’s personal investment in bitcoin made headlines when he incurred a massive loss. Son had purchased bitcoin in late 2017, at the height of the market’s bullish run, when the cryptocurrency was trading near $20,000. However, as the market began to decline in early 2018, Son sold off his holdings, suffering a $130 million loss, according to the Wall Street Journal.
Had Son held onto his investment, his bitcoin would be worth far more today, as the price has surged to around $93,000. This raises the critical question: will this new venture in bitcoin yield better results for SoftBank than the previous one?
To understand how SoftBank’s return to bitcoin might play out, it’s worth looking at its recent activities in other sectors. In January, SoftBank joined forces with OpenAI and Oracle (ORCL) to push forward a $100 billion initiative aimed at building AI infrastructure in the U.S. The announcement initially sent Oracle’s stock to new heights, but it has since fallen by 28%, even as the Nasdaq only dropped 12%.
Some analysts have speculated that SoftBank’s involvement in Oracle may have contributed to the stock’s underperformance. “When SoftBank enters an asset you own, you sell. I don’t make the rules,” joked Quinn Thompson, founder of crypto hedge fund Lekker Capital, in a post on X.
As SoftBank steps back into the bitcoin arena with Twenty One Capital, investors are left wondering whether this new attempt at cryptocurrency investment will finally prove successful—or if it will simply repeat the mistakes of the past.
