Cantor launches $3 billion Bitcoin venture with SoftBank and Tether

Cantor Fitzgerald, SoftBank, Tether (CRYPTO:USDT), and Bitfinex are finalising a $3 billion Bitcoin (CRYPTO:BTC) investment vehicle, according to sources cited by the Financial Times.

The new entity, called 21 Capital, will be structured through Cantor Equity Partners, a special purpose acquisition company (SPAC).

Tether is expected to contribute $1.5 billion in Bitcoin, SoftBank $900 million, and Bitfinex $600 million.

The venture is modeled after MicroStrategy’s approach, focusing on accumulating a substantial Bitcoin reserve.

Brandon Lutnick, son of U.S. Commerce Secretary Howard Lutnick, is leading the project following his recent appointment as chairman of Cantor Fitzgerald.

The SPAC has already secured $200 million and plans to raise an additional $350 million through a convertible bond and $200 million via private placement to expand its Bitcoin holdings.

Participants' Bitcoin contributions will be converted into equity in 21 Capital, with shares expected to list at $10 each, reflecting an internal Bitcoin valuation near $85,000 per coin.

“The structure is designed to mirror the strategy used by MicroStrategy, which transformed itself from a modest software company into a Bitcoin powerhouse with tens of billions in digital assets,” a source familiar with the matter told the Financial Times.

The initiative comes as institutional interest in digital assets increases, influenced by a favorable regulatory environment under the current U.S. administration.

“Cantor Fitzgerald arranges and finances vast amounts of securities and commodities and, as strong support of Bitcoin, will now build an incredible platform to support Bitcoin investors’ financing needs,” previously commented Howard Lutnick, CEO of Cantor Fitzgerald.

While the parties aim to announce the deal in the coming weeks, sources caution that the agreement could still change or fall through.

SoftBank and Tether have not publicly commented on the venture, and Cantor Fitzgerald declined to comment when contacted.

At the time of reporting, the Bitcoin (BTC) price was $93,753.08 and the Tether (USDT) price was $1.00.