Cantor Fitzgerald Eyes $3 Billion Bitcoin Initiative Backed by SoftBank, Tether, and Bitfinex

Cantor Fitzgerald is reportedly preparing to launch a groundbreaking $3 billion Bitcoin investment vehicle in partnership with SoftBank, Tether, and Bitfinex. The move marks a significant institutional push into digital assets as interest in cryptocurrencies regains momentum amid favorable political conditions and resurgent market valuations.

Spearheading the initiative is Brandon Lutnick, son of U.S. Commerce Secretary Howard Lutnick and current chairman of Cantor Fitzgerald. The investment project will be executed through a new firm, 21 Capital, formed via Cantor Equity Partners—a special purpose acquisition company (SPAC) that raised $200 million earlier this year. The use of a SPAC to facilitate such a massive venture reflects the evolving nature of capital formation within the digital assets space, combining traditional finance mechanisms with crypto-forward strategies.

Tether, SoftBank, Bitfinex Commit Billions in Bitcoin

According to sources close to the matter, the consortium plans to contribute a total of $3 billion in Bitcoin: Tether will provide $1.5 billion, SoftBank $900 million, and Bitfinex $600 million. These contributions will be converted into shares of 21 Capital at a valuation of $10 per share, pegging Bitcoin’s implied value at approximately $85,000 per coin. This valuation significantly exceeds current market prices, signaling the consortium’s bullish outlook on Bitcoin’s long-term potential.

In addition to the Bitcoin contributions, the venture aims to secure further funding through a $350 million convertible bond issuance and a $200 million private equity placement. The capital raised will enable 21 Capital to solidify its Bitcoin holdings and potentially expand into other crypto-related initiatives, creating a diversified portfolio of digital assets.

This model closely resembles MicroStrategy’s strategy of leveraging traditional capital markets to aggressively accumulate Bitcoin. By following a similar trajectory, Cantor Fitzgerald is positioning itself as a dominant institutional player in the space. The involvement of household names such as SoftBank also adds considerable credibility and visibility to the venture.

While the details of the deal remain subject to change, this move underscores a broader strategic pivot by Cantor Fitzgerald toward digital assets. However, the venture may face scrutiny from regulators, particularly given the past legal settlements involving Tether and Bitfinex. The consortium will need to navigate regulatory complexities carefully to maintain momentum and investor confidence.

If successful, 21 Capital could become one of the largest institutional holders of Bitcoin, reshaping how traditional finance engages with cryptocurrency. As Bitcoin continues to inch closer to its all-time highs, this investment initiative may mark a pivotal moment in the mainstream adoption of digital assets by Wall Street.