According to the Financial Times, Tether is set to contribute $1.5 billion, SoftBank Group will invest $900 million, and Bitfinex will provide $600 million toward a new crypto acquisition firm called 21 Capital.
Brandon Lutnick, chairman of investment bank Cantor Fitzgerald, is reportedly joining forces with SoftBank, Tether, and Bitfinex to launch a $3 billion cryptocurrency acquisition venture.
According to the Financial Times on April 23, Lutnick and the group aim to establish a publicly traded crypto acquisition firm, seeking to leverage a favorable environment under crypto-supportive U.S. President Donald Trump and emulate Michael Saylor’s company, Strategy. The report cites three individuals familiar with the plan.
In January, Cantor Equity Partners raised $200 million for a new venture named 21 Capital. Meanwhile, stablecoin issuer Tether is set to invest $1.5 billion in Bitcoin (BTC), Japan’s SoftBank Group will contribute $900 million, and crypto exchange Bitfinex will provide $600 million.
Lutnick’s new venture is aiming to secure an additional $350 million through convertible bonds, along with a separate $200 million private equity raise, to purchase more Bitcoin.
Ultimately, the Bitcoin investments from Tether, Bitfinex, and SoftBank will be converted into shares of 21 Capital, with Bitcoin valued at $85,000 per coin and each share priced at $10.
The deal is still pending finalization, and certain terms may change before its official announcement. Brandon Lutnick became chairman of Cantor Fitzgerald after his father, Howard Lutnick, stepped down to take on the role of U.S. Secretary of Commerce.
Cantor Fitzgerald, SoftBank, Tether, and Bitfinex did not immediately respond to Cointelegraph’s request for a comment.
Since 2021, Cantor Fitzgerald has overseen Tether’s Treasury portfolio, managing $134 billion in reserves, primarily held in U.S. Treasury bills. The firm also holds a 5% ownership stake in the stablecoin issuer.
Previously, Cantor served as an advisor for Tether’s $775 million investment in Rumble, a YouTube alternative, made in December of last year.
On March 11, Cantor Fitzgerald announced the launch of a Bitcoin financing division with $2 billion in initial funding, aimed at helping institutional investors borrow against their crypto assets. Anchorage Digital and Copper were chosen to serve as custodians and manage the collateral.
According to data from Fintel, Cantor Fitzgerald currently manages more than $5 billion in assets spread across 275 different holdings.
