Cantor is set to launch a $3 billion venture backed by Softbank and Tether

Brandon Lutnick is spearheading a $3 billion Bitcoin investment through Cantor Fitzgerald, partnering with SoftBank, Tether, and Bitfinex to form 21 Capital. The firm aims to emulate MicroStrategy’s strategy of holding Bitcoin as a treasury asset for long-term appreciation. This initiative reflects the growing institutional adoption of Bitcoin, driven by positive market sentiment and increased demand, as well as reduced circulation.

Bitcoin’s growing institutional adoption

According to a Financial Times report on Wednesday, Brandon Lutnick, the son of US Commerce Secretary Howard Lutnick, is partnering with SoftBank, Tether, and Bitfinex to capitalize on a cryptocurrency revival under US President Donald Trump.

The report explains that the consortium led by Cantor Fitzgerald is nearing the launch of a multibillion-dollar Bitcoin investment venture, aiming to replicate MicroStrategy’s dramatic success.

Lutnick is spearheading the creation of a special purpose acquisition company (SPAC), Cantor Equity Partners. This company raised $200 million in January and will use the cash to create a new firm called 21 Capital. According to the report, this firm is designed to absorb a $3 billion infusion of Bitcoin from other cryptocurrency investors and trading firms. 

Tether will contribute $1.5 billion worth of Bitcoin, while SoftBank and Bitfinex will add $900 million and $600 million, respectively. Bitfinex and Tether are affiliated through shared ownership and leadership. In addition to the Bitcoin contributions, Cantor Equity Partners will raise a $350 million convertible bond and conduct a $200 million private equity placement to expand its BTC holdings further. 

“Eventually, SoftBank, Tether and Bitfinex would see their investment of bitcoin converted into shares in 21 Capital at $10 per share and value the digital currency at $85,000 per coin,” reports Financial Times.

The report cautioned that, although the deal was likely to be announced in the coming weeks, it could still fail to materialize, and the numbers might change.

This strategy mirrors that of MicroStrategy, which gained notoriety after issuing stock and speculative debt to amass billions in BTC, driving its market cap to $91 billion and transforming the company into a crypto juggernaut. Many public companies, like Japanese investment firm Metaplanet, Bitcoin mining firm MARA Holdings, and US video game retailer GameStop, have followed Strategy’s footsteps and shown interest in Bitcoin.

The companies’ interest in Bitcoin indicates a growing acceptance of BTC as a strategic asset, which boosts its legitimacy and potentially drives long-term adoption. This trend is generally bullish for Bitcoin’s price, driven by increased demand, a reduced circulating supply, and positive market sentiment. If this trend continues, Bitcoin is likely to experience more stable price growth over the long term; however, short-term fluctuations are likely to persist as the market adjusts to this new wave of institutional involvement. When writing on Wednesday, Bitcoin trades around $92,800.