Cantor Fitzgerald, SoftBank, Tether, Bitfinex Launch $3 Billion Bitcoin Venture

Cantor Fitzgerald, a prominent investment banking firm, is reportedly collaborating with SoftBank, Tether, and Bitfinex to establish a $3 billion Bitcoin acquisition venture named 21 Capital. This new entity will be funded with $3 billion in Bitcoin, with Tether contributing $1.5 billion, SoftBank $900 million, and Bitfinex $600 million. The partners will convert their Bitcoin contributions into shares at a valuation of $85,000 per coin, aiming to replicate the success of MicroStrategy as a publicly listed Bitcoin-focused company.

The venture will operate through Cantor Equity Partners, a special-purpose acquisition company that raised $200 million earlier this year. This move aligns with Cantor Fitzgerald's recent forays into the crypto space, including plans for a $2 billion Bitcoin lending program with Tether and the adoption of crypto platforms maintained by Anchorage Digital and Copper. These initiatives coincide with the appointment of Howard Lutnick, Cantor Fitzgerald's long-time executive and father of Brandon Lutnick, as the U.S. Commerce Secretary.

The consortium's goal is to create a publicly listed alternative to MicroStrategy, which has seen significant growth after pivoting to Bitcoin investing. The deal reflects a more accommodative stance toward cryptocurrency trading within the current administration. The venture is expected to be announced in the coming weeks, although the figures remain subject to change.

Cantor Fitzgerald has been actively involved in the crypto market, managing Tether’s Treasury portfolio and $134 billion of reserves, mainly in US Treasury bills, since 2021. The firm also owns a 5% stake in the stablecoin issuer. Previously, Cantor acted in an advisory role for Tether’s $775 million investment in Rumble, a YouTube alternative. Additionally, Cantor Fitzgerald recently rolled out a Bitcoin financing business with $2 billion in initial capital to help institutional investors borrow against their crypto holdings, with Anchorage Digital and Copper selected as Bitcoin custodians and collateral managers.

This strategic move by Cantor Fitzgerald, along with its partners, underscores the growing interest and investment in the cryptocurrency market. The collaboration aims to capitalize on the current market conditions and the supportive regulatory environment under the Trump administration. The venture's success will depend on its ability to navigate the complexities of the crypto market and deliver on its ambitious goals.