Cantor Fitzgerald is teaming up with crypto heavyweights Tether, Bitfinex, and SoftBank on a $3 billion Bitcoin investment vehicle.
According to an Apr. 22 report by Financial Times, the group plans to form a new publicly traded firm called 21 Capital, which will receive $3 billion in Bitcoin (BTC) from the participating companies. Tether (USDT) is expected to contribute $1.5 billion, while SoftBank and Bitfinex will add $900 million and $600 million, respectively.
The venture will also raise a $350 million convertible bond and a separate $200 million private equity round to purchase even more Bitcoin. The venture aims to offer investors a publicly listed vehicle that tracks Bitcoin’s performance through direct holdings, similar to Strategy’s approach of leveraging debt and equity to accumulate BTC.
That model has helped Strategy amass over 530,000 BTC for $36.4 billion, though its share price has dropped 20% from record highs reached in November.
The project is being led by Brandon Lutnick, recently appointed chair of Cantor Fitzgerald and son of U.S. Commerce Secretary Howard Lutnick. The younger Lutnick’s goal is to position 21 Capital at the heart of what backers see as a renewed crypto bull market under the Trump administration.
Contributing firms are expected to receive equity in 21 Capital at a valuation pegging Bitcoin at $85,000 per coin. Though subject to change, the deal is reportedly set to be announced in the coming weeks, according to sources familiar with the matter.
Cantor Fitzgerald has already worked closely with Tether, advising on its $775 million investment in the video-sharing platform Rumble. The venture comes as the Trump administration signals a friendlier stance on crypto policy, despite Tether and Bitfinex’s past regulatory settlements.
Paul Atkins, the new crypto-friendly as the Securities and Exchange Commission chairman, is expected to fast-track regulatory clarity, as well as enact policies that promote crypto innovation.
