Cantor Fitzgerald is joining forces with SoftBank, Tether, and Bitfinex to launch a $3 billion Bitcoin investment initiative named 21 Capital. This move aims to replicate MicroStrategy’s successful strategy of leveraging significant Bitcoin holdings to offer investors a publicly traded vehicle for cryptocurrency exposure.
Key Players and Investment Breakdown
Brandon Lutnick, recently appointed chairman of Cantor Fitzgerald and son of U.S. Commerce Secretary Howard Lutnick, is spearheading this venture. The investment breakdown is as follows:
- Tether contributing $1.5 billion in Bitcoin
- SoftBank investing $900 million
- Bitfinex adding $600 million
Additionally, the venture plans to raise a $350 million convertible bond and a $200 million private equity placement to acquire more Bitcoin. The Bitcoin contributions from the partners will be converted into shares of 21 Capital at $10 per share, effectively valuing Bitcoin at $85,000 per coin.
Strategic Timing Amid Pro-Crypto U.S. Policy Shift
This initiative emerges during a pro-crypto shift in U.S. policy under the Trump administration, with President Trump expressing intentions to champion cryptocurrency adoption in the country. The administration’s favorable stance is expected to provide regulatory clarity and promote innovation in the crypto space.
While Tether and Bitfinex have previously faced regulatory scrutiny, including settlements with the New York State Attorney General and the Commodity Futures Trading Commission, their involvement in this venture indicates a renewed institutional interest in digital assets.
