Brandon Lutnick, just lately named chairman of Cantor Fitzgerald, is reportedly working with SoftBank, Tether, and Bitfinex on the formation of a $3 billion Bitcoin and digital asset acquisition firm, based on a report from the Monetary Occasions.
The proposed enterprise, named 21 Capital, goals to develop into a publicly listed firm centered on large-scale investments in Bitcoin and digital belongings.
Jack Mallers, founding father of Strike, will function CEO, bringing deep experience in Bitcoin infrastructure and international fee techniques to information the agency’s technique.
The initiative attracts inspiration from company fashions which have beforehand allotted important capital to Bitcoin. In January, Cantor Fairness Companions secured $200 million in preliminary funding to launch the venture.
In keeping with sources cited by the Monetary Occasions, contributions to the deliberate $3 billion fund embrace $1.5 billion in Bitcoin from Tether, $900 million from SoftBank Group, and $600 million from Bitfinex.
The group can also be aiming to lift a further $550 million by way of a mix of convertible bonds and personal fairness placements to assist additional Bitcoin acquisitions.
As outlined in preliminary supplies, the Bitcoin contributed by Tether, SoftBank, and Bitfinex would ultimately be transformed into fairness in 21 Capital, based mostly on a hard and fast Bitcoin valuation of $85,000 and a share value of $10.
The phrases of the association haven’t been finalized and stay topic to vary.
Brandon Lutnick assumed the position of chair at Cantor Fitzgerald following his father, Howard Lutnick’s appointment as U.S. Secretary of Commerce.
Cantor Fitzgerald has been managing Tether’s Treasury portfolio since 2021, overseeing roughly $134 billion in reserves, primarily composed of U.S. Treasury securities. The agency additionally maintains a 5% fairness stake in Tether.
In December 2024, Cantor served as an advisor for Tether’s $775 million funding in video-sharing platform Rumble.
As well as, Cantor introduced a separate $2 billion Bitcoin lending initiative in March, geared toward institutional buyers searching for to borrow in opposition to digital asset holdings.
Custody and collateral administration companies for this system are being offered by Anchorage Digital and Copper. In keeping with Fintel, Cantor at present manages greater than $5 billion in belongings throughout 275 holdings.
Share this text