Cantor Fitzgerald is reportedly preparing to launch a multibillion-dollar Bitcoin investment vehicle in partnership with SoftBank, Tether and Bitfinex, as institutional interest in digital assets intensifies under the pro-crypto stance of the Trump administration.
The initiative comes at a moment when Bitcoin continues to trade near historic highs and investors seek exposure to the next phase of the cryptocurrency cycle.
The Financial Times reported Wednesday that the deal would see the creation of a new entity called 21 Capital, backed by $3b worth of Bitcoin contributed by the crypto firms.
Tether would contribute $1.5b in Bitcoin, while SoftBank would add $900m and Bitfinex would provide $600m, FT said. The structure is designed to mirror the strategy used by MicroStrategy, which transformed itself from a modest software company into a Bitcoin powerhouse with tens of billions in digital assets.
Cantor didn’t return Cryptonews’ request for comment by press time.
Cantor’s Bitcoin Push Led By Lutnick Heir as Firm Deepens Crypto Ties
Brandon Lutnick, who took over as chairman of Cantor Fitzgerald after his father Howard Lutnick joined the Trump administration as commerce secretary, is leading the effort. Under his leadership, the firm has increased its involvement in digital assets, advising on high-profile deals such as Tether’s $775m investment in video platform Rumble.
The vehicle will operate through Cantor Equity Partners, a special purpose acquisition company that raised $200m earlier this year. It will also issue a $350m convertible bond and raise an additional $200m through a private equity placement to expand its Bitcoin holdings. The strategy involves converting the Bitcoin contributions into shares of 21 Capital at a price of $10 each, with an internal valuation of $85,000 per Bitcoin.
While the parties are aiming to announce the deal in the coming weeks, the details are still subject to change. The final agreement could shift or fall through altogether.
Crypto Resurgence, Policy Tailwinds Draw Wall Street Deeper Into Bitcoin
The timing reflects a broader resurgence in institutional crypto investment. Bitcoin’s price soared to over $108,000 following Trump’s electoral victory in November and has since fluctuated, now sitting around $92,000. Despite volatility, the broader trend has attracted interest from firms seeking to replicate the gains of early adopters.
MicroStrategy, whose pivot to Bitcoin began in 2020, now carries a market capitalisation of more than $9b. Its model of raising equity and debt to accumulate Bitcoin has become a template for firms seeking to position themselves as crypto-native entities within public markets.
The new venture also comes with a degree of reputational risk. Tether and Bitfinex, both of which are owned by the same parent company, settled major investigations with US regulators in 2021. However, the Trump administration has promised a lighter regulatory touch for crypto, which may create a more favourable environment for such initiatives.
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