Brandon Lutnick, son of US Commerce Secretary Howard Lutnick, is reportedly leading a $3 billion cryptocurrency initiative through his firm Cantor Fitzgerald. He’s joined forces with crypto giants including SoftBank, Tether, and Bitfinex, to launch a bitcoin-focused investment vehicle aimed at replicating the success of MicroStrategy, the software company turned crypto giant.
Cantor Fitzgerald’s Bitcoin Strategy
According to sources, the group will pool billions of dollars in bitcoin into a new entity designed to aggressively acquire and hold the crypto, in an effort to replicate the success story of MicroStrategy. Note that MicroStrategy has a market value of $91 billion valuation, largely due to its massive Bitcoin holdings.
Brandon Lutnick, who took over as chair of Cantor Fitzgerald after his father stepped down to join the Trump administration, will oversee this new venture. The consortium, named Cantor Equity Partners, raised $200 million in January to kick things off. It plans to form a new company called 21 Capital, which will receive $3 billion worth of bitcoin from its backers.
Tether is expected to contribute $1.5 billion, while SoftBank and Bitfinex are set to add $900 million and $600 million respectively. Notably, Tether and Bitfinex share ownership and leadership structures. Additional funding will come from a $350 million convertible bond and a $200 million private equity placement, aimed at further bitcoin purchases.
Eventually, the backers will convert their bitcoin contributions into equity in 21 Capital at $10 per share, valuing the cryptocurrency at a lofty $85,000 per coin. However, insiders caution that the deal, which may be announced soon, could still face changes.
This move marks Cantor Fitzgerald’s first major step into the crypto-focused special purpose acquisition companies (Spacs). Beyond Cantor Equity Partners, the firm has launched two more Lutnick-led Spacs and underwritten several others from third parties, signaling broader ambitions in the area.
The timing deal may prove favorable: the Trump administration has taken a more crypto-friendly regulatory stance, and Cantor Fitzgerald has already advised on major deals like Tether’s $775 million investment in Rumble, a conservative-leaning video platform.
As for Bitcoin, the crypto has remained strong since Trump’s election victory in November, reaching a high of $106,000 and is currently trading at $93,230.
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