- Brandon Lutnick of Cantor Fitzgerald is partnering with SoftBank, Tether, and Bitfinex to create a $3 billion crypto acquisition company.
- The new venture, 21 Capital, has raised $200 million with plans to secure additional funding through Bitcoin investments and convertible bonds.
- Cantor Fitzgerald has existing ties to Tether, managing its Treasury portfolio and owning a 5% stake in the stablecoin issuer.
Brandon Lutnick, chair of investment banking firm Cantor Fitzgerald, is forming a $3 billion cryptocurrency acquisition company in partnership with SoftBank, Tether, and Bitfinex. According to the Financial Times on April 23, the consortium aims to establish a publicly listed entity to take advantage of the crypto market under a Trump presidency, seeking to mirror the success of Michael Saylor’s Strategy company.
Cantor Equity Partners has already secured $200 million in January for the new venture named 21 Capital. The funding structure includes $1.5 billion in Bitcoin from stablecoin issuer Tether, $900 million from Japanese investment firm SoftBank Group, and $600 million from crypto exchange Bitfinex, as reported by sources briefed on the plan.
The venture plans to raise an additional $350 million through convertible bonds and $200 million from a private equity placement to purchase more Bitcoin. Eventually, the Bitcoin investments from Tether, Bitfinex, and SoftBank will be converted to shares in 21 Capital, with Bitcoin valued at $85,000 per coin and shares priced at $10 each.
The deal hasn’t been finalized, and certain details may change before an official announcement. Brandon Lutnick assumed the chair position at Cantor Fitzgerald after his father, Howard Lutnick, departed to serve as U.S. Secretary of Commerce.
Established Crypto Connections
Cantor Fitzgerald has maintained a strong presence in the cryptocurrency sector, managing Tether’s Treasury portfolio and $134 billion in reserves, primarily in U.S. Treasury bills, since 2021. The investment firm also holds a 5% ownership stake in the stablecoin issuer.
Previously, Cantor served as an advisor for Tether’s $775 million investment in Rumble, a YouTube alternative, in December 2023. More recently, on March 11, the firm announced a new Bitcoin financing business with $2 billion in initial capital, designed to help institutional investors use their crypto holdings as collateral.
Cantor Fitzgerald currently manages over $5 billion worth of assets across 275 holdings, according to Fintel data. The firm, along with SoftBank, Tether, and Bitfinex, did not immediately respond to requests for comment from Cointelegraph regarding the new venture.
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