21 Capital is born with the backing of SoftBank, Bitfinex, and Tether, aiming to replicate the Strategy model.
According to the Financial Times, Brandon Lutnick, president of financial services firm Cantor Fitzgerald, is forming a strategic partnership with companies such as SoftBank, Tether, and Bitfinex to create a $3 billion bitcoin acquisition company.
The consortium led by Lutnick plans to set up a publicly listed bitcoin acquisition firm to seize market opportunities under the presidency of Donald Trump. The goal, according to the Financial Times report, is to replicate the model of Michael Saylor with his company Strategy.
Last January, Cantor Equity Partners raised $200 million for the new company, named 21 Capital. At the same time, stablecoin issuer Tether will contribute $1.5 billion in bitcoin, Japanese holding company SoftBank Group will add $900 million, and exchange Bitfinex will complete the pool with $600 million.
Lutnick’s initiative also aims to raise an additional $350 million in convertible bonds and $200 million through a private placement to acquire more bitcoins.
The plan provides for the bitcoin investments made by Tether, Bitfinex, and SoftBank to later be converted into shares of 21 Capital, with bitcoin priced at $85,000 per coin and shares priced at $10 each.
It’s worth noting that the deal is not yet finalized, and some details could be adjusted before the official announcement. Brandon Lutnick was appointed president of Cantor Fitzgerald after his father, Howard Lutnick, stepped down to take on the role of U.S. Secretary of Commerce.
Cantor’s role in the Bitcoin and crypto space
Since 2021, Cantor Fitzgerald has managed Tether’s treasury portfolio and reserves, which amount to $134 billion, primarily in U.S. Treasury bills. The firm also holds a 5% stake in the stablecoin issuer.
Previously, Cantor acted as an advisor for Tether’s $775 million investment in Rumble, a YouTube alternative, completed in December last year.
On March 11, Cantor Fitzgerald also announced the launch of a $2 billion bitcoin financing business to help institutional investors secure loans using their bitcoins as collateral. Anchorage Digital and Copper were selected as bitcoin custodians and collateral managers for the initiative.
Currently, Cantor Fitzgerald holds over $5 billion in assets across 275 total investments, according to Fintel data.
