Brandon Lutnick of Cantor Fitzgerald is launching a $3 billion Bitcoin acquisition firm, 21 Capital, in collaboration with Tether, Bitfinex, and SoftBank. The venture aims to capitalise on the crypto market, backed by significant funding from the partners. The Bitcoin value will be fixed at $85,000 per coin, and shares will be priced at $10 each, pending finalisation of the deal.
Brandon Lutnick, chair of Cantor Fitzgerald, is collaborating with Tether, Bitfinex, and SoftBank to establish a $3 billion Bitcoin acquisition firm named 21 Capital. This initiative comes as reported by Financial Times on April 23, and demonstrates an effort to leverage opportunities within the expanding cryptocurrency market under the US administration during Donald Trump’s presidency, emulating Michael Saylor’s company strategy.
The venture has already achieved initial funding of $200 million from Cantor Equity Partners. Tether is contributing $1.5 billion in Bitcoin, while SoftBank and Bitfinex are set to invest $900 million and $600 million respectively. The strategy includes plans to raise an additional $350 million through convertible bonds and $200 million via private equity for further Bitcoin acquisitions.
In the investment arrangement, Tether, SoftBank, and Bitfinex’s Bitcoin assets will be converted into shares of 21 Capital. The value of Bitcoin will be locked at $85,000 per coin, with shares priced at $10 each. However, since the deal is still being finalised, certain details may be subject to change.
Cantor Fitzgerald has a notable history in the cryptocurrency sector, managing Tether’s Treasury since 2021, and holding a 5% stake in the stablecoin issuer. Furthermore, the firm has also launched a $2 billion fund aimed at assisting institutions in financing based on their digital assets. This partnership represents a significant step forward in integrating the traditional financial framework with blockchain technology.
