Cantor Fitzgerald is reportedly stepping into the Bitcoin investment arena with plans to launch a $3 billion digital asset venture, Financial Times reported on April 23.
The initiative is backed by heavyweight partners, including stablecoin issuer Tether, SoftBank, and crypto platform Bitfinex.
21 Capital
The venture, named 21 Capital, will use $200 million in seed funding secured by Cantor Equity Partners in January.
Brandon Lutnick, son of US Commerce Secretary Howard Lutnick, leads the effort. The company aims to mirror the Bitcoin-focused process that turned MicroStrategy, now rebranded as Strategy, into a dominant force in the market.
Unlike Strategy, which bought Bitcoin directly to build its holdings, 21 Capital will start with contributions from its founding partners. Tether is expected to provide $1.5 billion worth of Bitcoin. SoftBank will add $900 million, and Bitfinex will contribute $600 million.
Beyond these initial assets, 21 Capital also plans to raise another $550 million. This will include $350 million from convertible bonds and $200 million through private equity. The fresh capital will go toward further Bitcoin acquisitions, positioning the firm to compete with existing public companies holding large crypto reserves.
To support its operations, Cantor Fitzgerald has brought on Copper and Anchorage Digital to manage custody and collateral. The goal is to offer secure, Bitcoin-backed financing solutions tailored to institutional investors.
Institutional demand for Bitcoin grows
This venture underlines a rising trend of traditional financial institutions deepening their exposure to digital assets.
Cantor Fitzgerald’s move mirrors the shift that made Strategy a top stock performer by providing investors with indirect Bitcoin exposure.
Strategy currently holds over 534,000 BTC, valued at nearly $50 billion, making it the largest corporate holder of the top crypto asset.
Meanwhile, SoftBank’s participation in 21 Capital also signals a renewed bet on Bitcoin.
VanEck’s Mathew Sigel pointed out that the firm’s CEO, Masayoshi Son, reportedly lost over $130 million after a poorly timed $200 million BTC investment in 2017.
This time, however, SoftBank appears committed to the long term. Earlier in the year, it invested $50 million in Cipher Mining and entered negotiations to support high-performance computing infrastructure, although the deal fell through.
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