Cantor Fitzgerald, SoftBank, Tether, Bitfinex Form $3 Billion Bitcoin Acquisition Vehicle

Brandon Lutnick, the chair of the brokerage company Cantor Fitzgerald, is reportedly forming a consortium with SoftBank, Tether, and Bitfinex to capitalize on the growing crypto industry. This move comes under the administration of US President Donald Trump, who has shown interest in the potential of digital currencies.

According to sources familiar with the matter, Lutnick, who is also the son of US Commerce Secretary Howard Lutnick, is collaborating with these firms to establish a multibillion-dollar Bitcoin acquisition vehicle. The goal is to replicate the success of MicroStrategy, which is currently the largest corporate holder of the flagship cryptocurrency.

In January, a special purpose acquisition company called Cantor Equity Partners raised $200 million. This funding will be used to create a new firm named 21 Capital. The vehicle will also receive $3 billion worth of Bitcoin from the partners. Tether, the stablecoin issuer, will contribute $1.5 billion in BTC. SoftBank, the Japanese multinational investment holding company, and the crypto exchange Bitfinex will provide $900 million and $600 million, respectively, of the crypto asset. The investments, valued at $85,000 per BTC, will be converted into shares in 21 Capital at $10 per share.

The vehicle also plans to raise a $350 million convertible bond and a $200 million private placement of equity to purchase more Bitcoin. The sources indicate that the deal is likely to be announced in the coming weeks, but they caution that it may not proceed as planned, or the numbers could change.

This strategic move by Cantor Fitzgerald, SoftBank, Tether, and Bitfinex highlights the increasing interest and investment in the crypto industry. The formation of 21 Capital aims to leverage the potential of Bitcoin, following the lead of MicroStrategy, which has made significant investments in the cryptocurrency. The involvement of major players like SoftBank and Tether further underscores the growing acceptance and integration of digital currencies in the financial landscape.