Cantor Fitzgerald, SoftBank, Tether, Bitfinex Form $3 Billion Bitcoin Investment Venture

Brandon Lutnick, the son of US Commerce Secretary Howard Lutnick, is spearheading a significant Bitcoin investment venture. The initiative involves Cantor Fitzgerald, a financial services company led by Lutnick, collaborating with SoftBank, Tether, and Bitfinex to form a Bitcoin investment vehicle valued at over $3 billion. This move comes as Bitcoin experiences a notable recovery rally.

According to sources, Cantor Equity Partner, a special purpose acquisition company (SPAC) led by Lutnick, raised $200 million in January. This funding will support the creation of a new firm named 21 Capital. The cryptocurrency companies involved in the initiative are contributing substantial amounts of Bitcoin to 21 Capital. Bitfinex will contribute $600 million, while SoftBank, the Japanese multinational investment firm, will provide $900 million. This brings the total Bitcoin contribution from the partners to $3 billion, highlighting SoftBank’s growing interest in the cryptocurrency space.

The cryptocurrency investments will be converted into shares of 21 Capital at $10 per share, with Bitcoin valued at $85,000 per coin. In addition to the partner contributions, the SPAC plans to raise further funds through a $350 million convertible bond and a $200 million private equity placement to acquire additional Bitcoin. The initiative aims to replicate the success of Strategy, the largest corporate holder of Bitcoin, which has been acquiring Bitcoin since 2020 and holds an unrealized profit of approximately 39.8%.

As the consortium moves forward, its success will likely depend on Bitcoin’s long-term performance and the broader regulatory outlook for cryptocurrencies. The initiative underscores the growing interest and investment in Bitcoin from major financial players, signaling a potential shift in the cryptocurrency landscape. The move also highlights the strategic importance of Bitcoin as a store of value and a hedge against inflation, as noted by analysts. The success of this venture could set a precedent for future large-scale Bitcoin investments and influence the broader adoption of cryptocurrencies in the financial sector.