Once Bitten, Now With Backup: SoftBank Founder Returns to Bitcoin After $130M Loss in 2018
History may not repeat, but it often rhymes, especially
in markets. That might be the case for SoftBank, the Japanese investment
powerhouse now stepping back into the crypto arena years after a painful $130
million loss on bitcoin by its founder, Masayoshi Son.
SoftBank has joined forces with crypto players Tether,
Bitfinex, and Cantor Fitzgerald to back Twenty One Capital, a new investment
firm focused on Bitcoin, Reuters reported.
The move signals renewed interest in crypto from the
$308.7 billion asset manager, even as questions linger over whether the group
has learned from its past missteps.
Masayoshi Son’s Costly Bitcoin Bet
SoftBank’s previous brush with bitcoin made headlines
for the wrong reasons. Masayoshi Son jumped into crypto during the 2017 boom,
just as bitcoin peaked near $20,000.
The billionaire founder of SoftBank lost $130 million
of his own money by acquiring Bitcoin near the peak and later selling it, ForexLive
reported citing Dow Jones.
But when the market crashed in early 2018, he exited,
suffering a $130 million loss. If he had held on, his position would have
multiplied significantly; Bitcoin now trades above $90,000.
That backdrop makes SoftBank’s new crypto involvement
especially noteworthy. Unlike Son’s solo gamble, the current move is part of a
collaborative institutional venture, a factor some believe could alter the
outcome.
SoftBank’s re-entry into crypto coincides with larger
shifts across its investment strategy. Open AI recently announced up to $40
billion funding round led by SoftBank Group, valuing the AI firm at $300
million. The project includes Oracle and OpenAI, with SoftBank positioned as a
major contributor.
AI Ambitions and a Broader Investment
At the time of publication, Bitcoin traded for $93,445,
representing a nearly 10% price increase in the past week. The total crypto
market cap is currently at $2.92 trillion.
The new crypto initiative suggests a more calculated
approach from SoftBank. Rather than a personal bet by its founder, this time
it’s a multi-firm effort embedded in a broader financial strategy. Still, given
the past, market watchers remain cautious.
SoftBank’s move could indicate a growing institutional
acceptance of bitcoin. The stakes are higher, the environment is more mature, and the partners are more experienced.
History may not repeat, but it often rhymes, especially
in markets. That might be the case for SoftBank, the Japanese investment
powerhouse now stepping back into the crypto arena years after a painful $130
million loss on bitcoin by its founder, Masayoshi Son.
SoftBank has joined forces with crypto players Tether,
Bitfinex, and Cantor Fitzgerald to back Twenty One Capital, a new investment
firm focused on Bitcoin, Reuters reported.
The move signals renewed interest in crypto from the
$308.7 billion asset manager, even as questions linger over whether the group
has learned from its past missteps.
Masayoshi Son’s Costly Bitcoin Bet
SoftBank’s previous brush with bitcoin made headlines
for the wrong reasons. Masayoshi Son jumped into crypto during the 2017 boom,
just as bitcoin peaked near $20,000.
The billionaire founder of SoftBank lost $130 million
of his own money by acquiring Bitcoin near the peak and later selling it, ForexLive
reported citing Dow Jones.
But when the market crashed in early 2018, he exited,
suffering a $130 million loss. If he had held on, his position would have
multiplied significantly; Bitcoin now trades above $90,000.
That backdrop makes SoftBank’s new crypto involvement
especially noteworthy. Unlike Son’s solo gamble, the current move is part of a
collaborative institutional venture, a factor some believe could alter the
outcome.
SoftBank’s re-entry into crypto coincides with larger
shifts across its investment strategy. Open AI recently announced up to $40
billion funding round led by SoftBank Group, valuing the AI firm at $300
million. The project includes Oracle and OpenAI, with SoftBank positioned as a
major contributor.
AI Ambitions and a Broader Investment
At the time of publication, Bitcoin traded for $93,445,
representing a nearly 10% price increase in the past week. The total crypto
market cap is currently at $2.92 trillion.
The new crypto initiative suggests a more calculated
approach from SoftBank. Rather than a personal bet by its founder, this time
it’s a multi-firm effort embedded in a broader financial strategy. Still, given
the past, market watchers remain cautious.
SoftBank’s move could indicate a growing institutional
acceptance of bitcoin. The stakes are higher, the environment is more mature, and the partners are more experienced.
