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Cantor Fitzgerald’s Ambitious $3 Billion Bitcoin Venture: 21 Capital

Cantor Fitzgerald is launching a $3 billion Bitcoin-focused venture called 21 Capital, led by Brandon Lutnick. Funded by Tether, SoftBank, and Bitfinex, the venture aims to replicate the strategy of Michael Saylor’s firm, Strategy. Significant contributions are made entirely in Bitcoin, showcasing a commitment to institutional cryptocurrency adoption. An official announcement may come soon, coinciding with a favourable political climate towards crypto.

Cantor Fitzgerald, a historic Wall Street investment firm, is initiating a substantial $3 billion venture focused on Bitcoin, named 21 Capital. This initiative aims to replicate the strategy implemented by the Bitcoin development company Strategy, previously known as Microstrategy. Brandon Lutnick, son of U.S. Commerce Secretary Howard Lutnick, leads this venture as the newly appointed chairman of Cantor Fitzgerald.

The funding for 21 Capital originates from a consortium of major backers, including Tether, SoftBank, and Bitfinex, with contributions entirely in Bitcoin, demonstrating their long-term belief in Bitcoin as a treasury asset. Specifically, Tether will contribute $1.5 billion in Bitcoin, SoftBank $900 million, and Bitfinex $600 million, leading to a total investment of $3 billion in BTC. The assets will be converted to shares of 21 Capital at the rate of $85,000 per Bitcoin and $10 per share.

Cantor Equity Partners, which is overseeing 21 Capital, previously raised $200 million in January to facilitate this initiative. Furthermore, they seek additional funding via a $350 million convertible bond issuance and a $200 million private equity placement to further bolster their Bitcoin holdings in response to increasing institutional interest.

Inspired by Michael Saylor’s Strategy, which adopted Bitcoin as its central reserve asset in 2020, 21 Capital aims to establish itself as a leading corporate Bitcoin holder globally. Presently, Strategy holds around 531,644 bitcoins, valued at over $44 billion. The creation of 21 Capital could set a significant precedent for institutional adoption of cryptocurrencies.

While negotiations on the venture’s terms continue and are subject to amendment, insiders suggest that an official announcement may be made in the coming weeks. This initiative coincides with a positive shift in the political landscape towards cryptocurrencies. Notably, President Donald Trump, identifying as the “crypto president,” has endorsed Bitcoin as a means to modernise the U.S. financial system and maintain the supremacy of the U.S. dollar worldwide.

Elena Garcia, a San Francisco native, has made a mark as a cultural correspondent with a focus on social dynamics and community issues. With a degree in Communications from Stanford University, she has spent over 12 years in journalism, contributing to several reputable media outlets. Her immersive reporting style and ability to connect with diverse communities have garnered her numerous awards, making her a respected voice in the field.

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