Cantor Fitzgerald Crypto Venture Plans Massive $3B Fund with SoftBank, Tether, Bitfinex

Get ready for a potential game-changer in the crypto investment landscape! A major new player could be emerging with serious financial muscle. Reports indicate that Cantor Fitzgerald, a prominent investment firm, is teaming up with giants like SoftBank, Bitfinex, and Tether to launch a significant new crypto acquisition company. This potential collaboration, centered around a planned $3 billion fund, aims to make substantial investments in the digital asset space, signaling growing institutional interest and confidence.

What is the Cantor Fitzgerald Crypto Venture Planning?

Sources suggest that Brandon Lutnick, leading Cantor Fitzgerald’s investment banking efforts, is spearheading a consortium to create a publicly listed company named 21 Capital. The ambitious goal is to raise and deploy $3 billion specifically for acquiring crypto assets, primarily Bitcoin. This move appears strategically timed, potentially aiming to capitalize on a market environment perceived as more favorable under a crypto-friendly US administration. The strategy reportedly draws inspiration from Michael Saylor’s successful approach at MicroStrategy, focusing on significant Bitcoin accumulation.

How is the $3B Tether Bitfinex Fund & SoftBank Crypto Investment Structured?

The funding structure for this venture involves substantial commitments from the key partners:

• Tether: The stablecoin issuer is expected to contribute a significant $1.5 billion, reportedly in Bitcoin.
• SoftBank Group: The Japanese investment powerhouse plans to add $900 million to the fund.
• Bitfinex: The cryptocurrency exchange is slated to contribute $600 million.

Beyond these initial contributions, 21 Capital also hopes to raise additional capital through convertible bonds ($350 million) and a private equity placement ($200 million) to boost its Bitcoin holdings further. A key detail mentioned is that the Bitcoin contributed by Tether, Bitfinex, and SoftBank would eventually be converted into shares of 21 Capital, with the Bitcoin value locked in at $85,000 per coin for this conversion process.

What Does This $3B Crypto Acquisition Mean?

The formation of a $3 billion crypto acquisition vehicle like 21 Capital by such prominent financial and crypto entities underscores a strong belief in the long-term value and potential of digital assets, particularly Bitcoin. This isn’t just about launching a fund; it’s about creating a publicly traded entity designed specifically to hold and grow a treasury in cryptocurrencies, mirroring the corporate strategies seen in companies like MicroStrategy. The reported target of operating under a potentially more favorable regulatory climate in the US highlights the strategic considerations driving this venture.

Cantor Fitzgerald’s Existing Ties to Crypto

It’s worth noting that Cantor Fitzgerald is not new to the crypto space. The firm has managed Tether’s substantial treasury portfolio, which includes $134 billion in reserves, primarily US Treasury bills, since 2021. Cantor Fitzgerald also holds a 5% ownership stake in Tether. Furthermore, they acted as advisors for Tether’s investment in Rumble last year. More recently, Cantor announced plans for a Bitcoin financing business with $2 billion in capital to help institutions borrow against their crypto assets, selecting Anchorage Digital and Copper as custodians. These existing relationships and initiatives demonstrate Cantor Fitzgerald’s increasing engagement and expertise in the digital asset market, making their lead role in this new $3B crypto acquisition venture a logical next step.

While the report outlines ambitious plans and significant commitments, it’s important to remember that the deal is not yet finalized, and details could still change. However, the potential formation of 21 Capital with the backing of Cantor Fitzgerald, SoftBank, Tether, and Bitfinex represents a major development that could bring substantial new capital and institutional focus into the cryptocurrency market.

Summary: A report indicates that Cantor Fitzgerald is planning a $3 billion crypto acquisition company, 21 Capital, in partnership with SoftBank, Bitfinex, and Tether. The venture aims to acquire Bitcoin and become a publicly listed entity, potentially leveraging a crypto-friendly US political climate. Funding includes $1.5B from Tether (in BTC), $900M from SoftBank, and $600M from Bitfinex, with plans for further capital raises. The contributed Bitcoin is expected to convert into 21 Capital shares at a value of $85,000 per BTC. This development highlights growing institutional confidence and strategic moves within the crypto space, building on Cantor Fitzgerald’s existing significant involvement with players like Tether.