Cantor Fitzgerald to build $3B Bitcoin venture in partnership with SoftBank, Tether, and Bitfinex
Key Takeaways
- Cantor Fitzgerald collaborates with SoftBank, Tether, and Bitfinex for a $3 billion Bitcoin investment venture.
- The venture involves creating Cantor Equity Partners and replicating MicroStrategy’s crypto investment strategy.
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Brandon Lutnick, the son of US Commerce Secretary Howard Lutnick and Chairman of Cantor Fitzgerald, is teaming up with SoftBank, Tether, and Bitfinex to build a $3 billion Bitcoin venture aimed at capitalizing on a pro-crypto shift in US policy under President Donald Trump, according to a Financial Times report.
The consortium plans to launch a new firm called 21 Capital using $200 million raised in January through the newly established SPAC, Cantor Equity Partners.
As detailed, Tether will contribute $1.5 billion in Bitcoin, while SoftBank and Bitfinex will provide $900 million and $600 million, respectively. The vehicle also intends to raise a $350 million convertible bond and a $200 million private placement of equity to fund additional Bitcoin purchases.
The partners’ Bitcoin investments will be converted into shares of 21 Capital at $10 per share, effectively valuing Bitcoin at $85,000 per coin. The deal underscores Cantor Fitzgerald’s growing involvement in cryptocurrency markets, following its advisory role in Tether’s $775 million investment in Rumble.
The deal could be unveiled soon, though terms may still change.
The venture seeks to replicate the success of MicroStrategy, now rebranded as Strategy, which has grown popular for its aggressive Bitcoin acquisition strategy.
The FT report follows news that the business intelligence firm, led by Bitcoin advocate Michael Saylor, acquired another 6,556 BTC last week.
Strategy’s Bitcoin holdings helped it secure a spot on the Nasdaq-100, and despite recent volatility, which is common among tech stocks, its share price has delivered a 159% return over the past year.
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