- 21 Capital to be led by Brandon Lutnick, modeling MicroStrategy’s aggressive Bitcoin strategy.
- Tether, Bitfinex, and SoftBank commit $3 billion in BTC; equity and debt rounds to raise an additional $550 million.
- Bitcoin now trades at $91,948 with strong bullish sentiment and a Fear and Greed Index of 72.
American firm Cantor Fitzgerald is set to introduce a Bitcoin investment vehicle backed by crypto industry powerhouses Tether, Bitfinex, and SoftBank. The initiative aims to establish the investment vehicle using a special purpose acquisition company (SPAC) and Strategy’s Bitcoin acquisition model.
21 Capital Enters the Crypto Space with Top Institutional Backing
Per a recent report by Financial Times, the consortium plans to unveil a new firm called 21 Capital with allocations from the participating parties. Brandon Lutnick, chairman of Cantor Fitzgerald, will oversee this ambitious project. It is worth noting that US Commerce Secretary Howard Lutnick is the father of the current Cantor Fitzgerald chief.
Lutnick’s approach is modeled after MicroStrategy’s aggressive Bitcoin adoption method after crossing over from the software industry into the crypto market. Two days ago, the firm announced yet another round of Bitcoin purchase, pumping its treasury holdings to 538,200 BTC. At present, it is the largest corporate Bitcoin holder in the world and boasts a market cap of $91 billion.
Earlier this year, Lutnick’s investment firm raised $200 million in funds through its SPAC called Cantor Equity Partners. These funds were channeled towards the formation of 21 Capital. The project is set to receive $3 billion in BTC contribution, with $600 million coming from Bitfinex and $900 million from SoftBank. Stablecoin issuer, Tether, tops this list with the highest BTC donation if $1.5 billion.
Apart from the consortium backing, the SPAC intends to raise $200 million in private equity and $350 million in convertible bonds. As expected, these funds would help facilitate the purchase of BTC. As part of its goal, the investment firm aims to provide investors with direct exposure to bitcoin. To achieve this, actively increases its Bitcoin holdings by using debt and equity to fund Bitcoin purchases.
Cantor Fitzgerald Eyes Bitcoin Boom with Equity Deal as BTC Surges Past $91K
Reports suggest that participating parties will receive equity in the investment firm, valuing Bitcoin at $85,000 per coin. However, parties close to sources say this valuation is subject to review. They also note that a deal could be announced soon.
Cantor Fitzgerald is no stranger in the crypto space. In December 2024, the company served as an adviser to Tether during its $775 million investment in YouTube alternative Rumble. Over the past four years, the firm has also managed Tether’s treasury portfolio, as well as $134 billion in reserves.
Early last month, Cantor Fitzgerald announced plans to introduce a Bitcoin financing initiative, where institutional investors can borrow against their crypto holdings. According to insights from Fintel, the firm currently manages over $5 billion in assets, spanning across 275 total holdings.
Meanwhile, Bitcoin has seen a dramatic price increase in the past days. It is changing hands at $ 91,948 following a modest intraday increase. According to Coincodex technical indicators, the BTC prediction sentiment is currently bullish. In addition, its Fear and Greed Index is showing 72 (Greed), indicating high buyer activity over the past week. Bitcoin currently trades above its 200-day simple moving average (SMA) and has seen 18 green outings in the past month.
