Brandon Lutnick’s Cantor Fitzgerald is establishing a $3 billion crypto acquisition company in partnership with SoftBank, Tether, and Bitfinex. The initiative plans to launch 21 Capital, aiming for a public listing and significant investment in Bitcoin. The firm has experience in crypto management and advisory roles, enhancing its credibility in the market.
Cantor Fitzgerald, led by Brandon Lutnick, is reportedly forming a $3 billion crypto acquisition company in collaboration with SoftBank, Tether, and Bitfinex. The objective is to launch a publicly listed firm that seizes opportunities in the crypto market, particularly under a pro-crypto administration. This initiative seeks to emulate the strategy utilised by Michael Saylor’s company.
The new firm, 21 Capital, previously raised $200 million in January. Tether will contribute $1.5 billion in Bitcoin, followed by SoftBank with $900 million and Bitfinex with $600 million. An additional $350 million in convertible bonds and $200 million from private equity placements are planned to fund further Bitcoin acquisitions.
Tether, Bitfinex, and SoftBank’s Bitcoin investments will be converted to 21 Capital shares, with Bitcoin values locked at $85,000 each and shares priced at $10. However, negotiations are ongoing and details may shift before the official announcement.
Cantor Fitzgerald boasts significant experience in the crypto sector, having managed Tether’s Treasury and $134 billion in reserves since 2021. The firm holds a 5% stake in Tether and has previously advised Tether’s $775 million investment in the media platform Rumble.
In March, Cantor Fitzgerald announced a Bitcoin financing service with an initial capital of $2 billion, aimed at assisting institutional investors in leveraging their crypto assets. They have appointed Anchorage Digital and Copper as Bitcoin custodians and collateral managers. Currently, Cantor Fitzgerald’s asset portfolio holds over $5 billion across 275 holdings, as per Fintel data.
