Financial giant Cantor Fitzgerald collaborates with SoftBank, Tether, and Bitfinex on a significant $3 billion Bitcoin project.
Going Big on Crypto: Cantor Fitzgerald, Tether, SoftBank, and Bitfinex Join Forces
Get ready for a blockbuster move in the world of cryptocurrency! Cantor Fitzgerald, teaming up with crypto giants Tether, Bitfinex, and SoftBank, is planning a whopping $3 billion investment in Bitcoin.
As per a report by Financial Times, this powerhouse group aims to establish a new publicly-traded firm called 21 Capital. This new kid on the block will receive a hefty $3 billion worth of Bitcoin from the participating companies. Tether is expected to contribute $1.5 billion, while SoftBank and Bitfinex will add $900 million and $600 million respectively.
But that's not all! 21 Capital is also raising a $350 million convertible bond and a separate $200 million private equity round to buy even more Bitcoin. The goal? Offer investors a publicly-listed vehicle that mirrors Bitcoin's performance, much like how Strategy has leveraged debt and equity to amass over 530,000 BTC worth $36.4 billion (though its share price has taken a 20% hit since reaching record highs in November).
Tether to Power Up Bitcoin Mining
The brainchild of Brandon Lutnick, the newly-appointed chair of Cantor Fitzgerald and son of U.S. Commerce Secretary Howard Lutnick, 21 Capital is poised to be at the epicenter of the anticipated crypto bull market under the Trump administration. Sources close to the matter suggest that contributing companies will receive equity in 21 Capital, pegging Bitcoin's value at a staggering $85,000 per coin.
This venture isn't a novel collaboration. Cantor Fitzgerald has already been working closely with Tether, advising on its $775 million investment in the video-sharing platform Rumble. The partnership comes at a time when the Trump administration seems more receptive to cryptocurrency policy, despite Tether and Bitfinex's past regulatory settlements.
A Friendlier Regulatory Environment
In addition, Paul Atkins, the new crypto-friendly Securities and Exchange Commission chairman, is expected to expedite regulatory clarity and foster policies that promote crypto innovation, ensuring a smooth path for this ambitious venture.
Lastly, Tether is backing Fizen, a project aimed at enhancing stablecoin payments and self-custody, further underlining the role of stablecoins in the evolving crypto ecosystem.
The $3 billion Bitcoin investment vehicle represents just one instance of the growing interest in cryptocurrency among established players. As institutional finance and the crypto sector continue to intertwine, the world of digital currencies may soon become a mainstream pillar of the financial industry. Stay tuned for more updates in this exciting space!
Insights: - The $3 billion Bitcoin investment is a collaborative effort between Cantor Fitzgerald, Tether, SoftBank, and Bitfinex, led by Brandon Lutnick. - The initiative aims to form a new entity, 21 Capital, which will invest in Bitcoin, offering investors a publicly-listed vehicle for tracking Bitcoin's performance. - Tether, SoftBank, and Bitfinex are set to contribute $1.5 billion, $900 million, and $600 million respectively, with the potential for additional funding through a convertible bond and private equity round. - The venture could signal a shift in corporate finance strategies, increasing the adoption of digital currencies in mainstream finance.
- Brandon Lutnick, the new chair of Cantor Fitzgerald, is leading a $3 billion Bitcoin investment, backed by Tether, SoftBank, and Bitfinex, in a new entity called 21 Capital.
- The goal of 21 Capital is to offer investors a publicly-listed vehicle that mirrors Bitcoin's performance, similar to how Strategy has amassed over 530,000 BTC through debt and equity.
- Tether is expected to contribute $1.5 billion, while SoftBank and Bitfinex will provide $900 million and $600 million respectively.
- To buy more Bitcoin, 21 Capital is also raising a $350 million convertible bond and a separate $200 million private equity round.
- The value of Bitcoin is pegged at $85,000 per coin based on the equity that contributing companies will receive in 21 Capital.
- Tether is also backing Fizen, a project aimed at improving stablecoin payments and self-custody, underlining the role of stablecoins in the evolving crypto ecosystem.
- The Trump administration's seeming receptiveness to cryptocurrency policy and the appointment of a crypto-friendly Securities and Exchange Commission chairman are expected to foster a more friendly regulatory environment for this ambitious venture.
