XXI Stock Edges Upward After Tether Buys Out SoftBank's Stake In BTC-Focused Twenty One Capital

• Tether International, the controlling shareholder of Twenty One Capital (XXI), announced on Wednesday that it has bought out SoftBank's entire stake in the company.
• Representatives of SoftBank on the XXI Board resigned as required by the company’s shareholder agreement.
• Tether said XXI was “one of the most important opportunities to build a public company around Bitcoin from the ground up,” signaling a stronger belief in the Bitcoin-native firm.

Shares of Twenty One Capital, Inc. (XXI) edged higher by over 2% on Wednesday after Tether International announced it has bought SoftBank’s entire stake in the Bitcoin (BTC)-focused public company, consolidating its ownership and changing the firm’s board.

In a statement, Tether said SoftBank’s representatives on the XXI Board of Directors resigned at the closing of the transaction under the company’s shareholder agreement. 

SoftBank had backed XXI since its formation, helping lend institutional credibility to the early-stage Bitcoin-focused venture. Tether did not reveal the financial terms of the deal. 

XXI stock rose to $8.07 in pre-market trading and $7.80 in early morning trade. 

Tether Tightens Control Of XXI

The largest stablecoin issuer described the company as one of the most important opportunities to build a public company around Bitcoin from the ground up. "SoftBank's involvement gave XXI the kind of institutional depth that few early-stage companies ever have," Paolo Ardoino, CEO of Tether, said.

Tether further added that the buyout shows confidence in XXI’s long-term Bitcoin strategy. "Their experience backing some of the most consequential technology companies in the world brought credibility, perspective, and discipline to XXI during a critical period of formation," said Ardoino. He also said the company “starts its next chapter” with a “stronger foundation” and “a clearer mandate”.

SoftBank Exits As Board Reshuffles

SoftBank’s exit ends a relationship that began with the formation of XXI last year, when the company brought the insight of one of the world’s most experienced technology investors to the board. From the start, Twenty One Capital was established as a public company native to Bitcoin, with Tether as a controlling stakeholder. 

Retail Sentiment Turns Bullish On XXI

On Stocktwits, retail sentiment around XXI improved to ‘bullish’ from the ‘neutral’ zone, while chatter stayed at ‘low’ levels over the past day.

Meanwhile, retail sentiment around Tether’s USDT remained in an ‘extremely bearish’ zone, while chatter stayed at ‘low’ levels over the past day. 

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