Cantor plans $3B crypto venture with SoftBank, Bitfinex and Tether: Report
Brandon Lutnick, chair of investment banking firm Cantor Fitzgerald, is reportedly partnering with SoftBank, Tether and Bitfinex to create a $3 billion crypto acquisition company.
Lutnick and the consortium hope to create a publicly listed crypto acquisition company to capitalize on the market under crypto-friendly US President Donald Trump, and replicate company Strategy, the Financial Times on April 23, citing three people who have been briefed on the plan.
Cantor Equity Partners raised $200 million in January for the new firm called 21 Capital. At the same time, stablecoin issuer Tether will fork out $1.5 billion in Bitcoin (), Japanese investment holding firm Softbank Group will contribute $900 million, and the crypto exchange Bitfinex will add $600 million.
Lutnick’s new venture hopes to raise another $350 million in convertible bonds and a separate $200 million private equity placement to .
Eventually, Tether, Bitfinex, and SoftBank’s Bitcoin investments will be converted into 21 Capital shares, with the value of the Bitcoin locked in at $85,000 per coin and shares costing $10 a pop.
However, the deal hasn’t been finalized yet, and some details could change before it’s officially announced. Brandon Lutnick was named chair of Cantor Fitzgerald when his father, Howard Lutnick, .
Brandon Lutnick was named chair of Cantor Fitzgerald when his father, Howard Lutnick (right), became the US Secretary of Commerce. Source:
Cantor Fitzgerald, SoftBank, Tether and Bitfinex didn’t immediately respond to Cointelegraph’s request for comment.
Cantor already well versed in crypto market
Cantor Fitzgerald has and $134 billion of reserves, mainly in US Treasury bills, since 2021. The firm also owns a .
Previously, Cantor acted in an advisory role for in YouTube alternative Rumble in December last year.
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Meanwhile, on March 11, Cantor Fitzgerald said it with $2 billion in initial capital to help institutional investors borrow against their crypto holdings. Anchorage Digital and Copper were selected as Bitcoin custodians and collateral managers.
Cantor Fitzgerald currently holds over $5 billion worth of assets across 275 total holdings, to Fintel data.
