Cantor Fitzgerald is working with Bitfinex, SoftBank, and Tether to create 21 Capital, a $3 billion Bitcoin investment company.
Aiming to imitate MicroStrategy’s approach of storing Bitcoin as a treasury asset for long-term appreciation, this endeavor is spearheaded by Brandon Lutnick, chairman of Cantor.
Who is Contributing What?
According to a Financial Times report, Bitfinex contributed $600 million, SoftBank contributed $900 million, and Tether contributed $1.5 billion in Bitcoin as part of 21 Capital’s fundraising.
With a goal to convert the Bitcoin holdings into shares worth $10 apiece, the enterprise is organized through Cantor Equity Partners, which has already raised $200 million.
This action is part of a larger trend of institutional adoption of Bitcoin, which is in line with the current U.S. administration’s pro-crypto posture.
Brandon’s father, former Cantor Fitzgerald CEO Howard Lutnick, just resigned to become U.S. Commerce Secretary under President Donald Trump, who has advocated for the financial system to incorporate cryptocurrencies.
Even though the agreement is still pending and could change, 21 Capital is a big step toward connecting traditional finance with the world of digital assets.
Also Read: Bitcoin Decline Could Trigger Michael Saylor’s Strategy to Sell-Off Holdings for Debt Payment
New Venture to Further Raise Funds to Buy Bitcoin
The Cantor Fitzgerald, Tether, Bitfinex, and SoftBank-backed $3 billion Bitcoin enterprise intends to grow even more by obtaining an extra $350 million through a convertible bond and a $200 million private equity round.
By using these assets to buy even more Bitcoin, the enterprise will firmly establish itself as a significant institutional player in the cryptocurrency market.
The objective is to give investors a publicly traded investment vehicle that uses spot holdings to directly track the performance of Bitcoin. This is similar to MicroStrategy’s strategy, which builds substantial Bitcoin reserves by leveraging both debt and equity.
The initiative seeks to draw in both professional and retail investors seeking safe, scalable exposure to Bitcoin by fusing institutional support with strategic funding.
How is This Beneficial?
For investors as well as the larger cryptocurrency market, this approach has several advantages. It offers a more regulated and accessible method of gaining exposure to Bitcoin by establishing a publicly traded company supported by significant financial institutions.
Long-term value is increased by the venture’s ability to purchase substantial quantities of Bitcoin without experiencing an immediate dilution of equity through the use of convertible bonds and private equity rounds.
Furthermore, the project gains legitimacy and stability via institutional support from companies like as Cantor Fitzgerald and SoftBank.
This would encourage more conventional investors to enter the cryptocurrency market, boost the value of Bitcoin, and encourage a wider acceptance of digital assets in traditional finance.
Also Read: Bloomberg ETF Analyst Says Michael Saylor’s Strategy Won’t Sell Bitcoin, Report