Cantor Fitzgerald is teaming up with major players in the crypto space—Tether, Bitfinex, and SoftBank—to launch a $3 billion Bitcoin investment vehicle.
According to the Financial Times, the partnership plans to create a publicly traded entity called 21 Capital, which will receive $3 billion in Bitcoin from the participating firms. Specifically, Tether will contribute $1.5 billion, while SoftBank and Bitfinex are set to add $900 million and $600 million, respectively.
In addition to these contributions, the venture plans to raise $350 million through a convertible bond and a further $200 million in a private equity round, which will be used to acquire even more Bitcoin. The primary goal of the venture is to offer investors a publicly listed vehicle that directly tracks Bitcoin’s performance, mirroring the strategy of leveraging debt and equity to amass BTC.
This approach has proven successful for Strategy, which has accumulated over 530,000 BTC valued at $36.4 billion. However, it’s worth noting that its share price has dropped 20% from the record highs it achieved in November.
The initiative is being led by Brandon Lutnick, the newly appointed chair of Cantor Fitzgerald and son of U.S. Commerce Secretary Howard Lutnick. His vision for 21 Capital is to position it at the centre of what many backers believe will be a new crypto bull market under the Trump administration.
As part of the venture, the contributing firms will receive equity in 21 Capital, valued at a Bitcoin price of $85,000 per coin. Although subject to change, sources familiar with the deal suggest that an official announcement is expected in the coming weeks.
Meanwhile, earlier this year, Brett Knoblauch, Head of Crypto and Digital Assets Research at Cantor Fitzgerald, forecasted that MicroStrategy’s (MSTR) stock could surge to $613. He attributed this potential rise to the company’s “capital markets flywheel” strategy, which enables it to increase Bitcoin holdings per share.
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