Cantor Fitzgerald is set to launch a $3 billion Bitcoin investment initiative in collaboration with SoftBank, Tether, and Bitfinex, according to a report by the Financial Times. The project involves the establishment of a new entity named 21 Capital, which aims to create a publicly listed alternative to existing Bitcoin investment strategies.
Brandon Lutnick, current chair and CEO of Cantor Fitzgerald and son of former CEO Howard Lutnick, is at the helm of this venture. The initiative will utilize funds from Cantor Equity Partners, a special purpose acquisition company (SPAC) that raised $200 million earlier this year.
The investment contributions to 21 Capital are substantial, with Tether expected to provide $1.5 billion in Bitcoin. SoftBank will contribute $900 million, while Bitfinex plans to supply $600 million worth of the crypto.
This collaboration aims to mirror the investment approach pioneered by Michael Saylor’s Strategy, which has seen significant success in the Bitcoin market.
The report highlights that the Bitcoin holdings from these companies will eventually be converted into shares of 21 Capital, valued at $10 per share, suggesting a valuation of $85,000 per Bitcoin. Additionally, Cantor’s vehicle plans to raise $350 million through a convertible bond and an additional $200 million via private equity placements for further Bitcoin acquisitions.
The Financial Times notes that an official announcement regarding this venture is expected in the coming weeks, although details may still be subject to changes or cancellation.
