After a $130M Loss in 2018, SoftBank Is Reinvesting in Bitcoin—What’s Changed?

SoftBank Dips Back Into Crypto After $130M Loss in 2018—Is the Timing Right This Time?

SoftBank, the Japanese investment giant with a history of bold moves, is reentering the cryptocurrency market by backing a new bitcoin-focused investment firm, Twenty One Capital. This initiative is launched in collaboration with Tether, Bitfinex, and Cantor Fitzgerald, marking a significant shift after its founder, Masayoshi Son, experienced a massive personal loss in bitcoin just a few years ago.

For many, SoftBank’s renewed interest in bitcoin is seen as a positive development, signaling further institutional adoption of digital currencies. With over $308 billion in assets under management, SoftBank’s venture into bitcoin adds credibility to the cryptocurrency space, according to Jeff Park, head of alpha strategies at Bitwise, who views SoftBank’s move akin to a Japanese sovereign wealth fund embracing crypto.

However, for those familiar with SoftBank’s earlier crypto misadventures, this return might feel like déjà vu.

In 2019, Masayoshi Son made headlines for a significant loss on a personal bitcoin investment. Son first bought bitcoin during the crypto boom of late 2017 when the price surged to nearly $20,000. However, as the market began to decline in early 2018, Son sold off his bitcoin holdings, suffering a $130 million loss, as reported by the Wall Street Journal.

Had Son held on to his investment, it would have been highly profitable given bitcoin’s current price of around $93,000. This raises the question: could this time be different for SoftBank in the crypto space?

Some might point to SoftBank’s recent involvement in the AI sector for clues. In January, U.S. President Donald Trump revealed a $100 billion collaboration between SoftBank, OpenAI, and Oracle (ORCL) to develop AI infrastructure. While this announcement was expected to drive Oracle’s stock higher, it has instead fallen by 28% since the news broke, compared to a 12% drop in the Nasdaq.

This unexpected underperformance has led some analysts to speculate about the impact of SoftBank’s involvement. Quinn Thompson, founder of crypto hedge fund Lekker Capital, humorously noted, “When SoftBank enters an asset you own, you sell. I don’t make the rules,” alluding to the stock pullback.

With SoftBank’s renewed involvement in crypto through Twenty One Capital, investors are left wondering whether this time will mark a successful venture or whether it’s simply another case of missed timing in the volatile world of digital assets.