Key Takeaways
- Cantor, SoftBank, and Tether are forming a $3B bitcoin investment entity.
- Tether is contributing $1.5B in bitcoin, while SoftBank and Bitfinex add $900M and $600M.
- 21 Capital aims to mirror Strategy's approach of publicly listed bitcoin holdings.
Cantor Fitzgerald is working with SoftBank, Tether, and Bitfinex to launch a $3 billion bitcoin investment vehicle, the Financial Times reported.
The new entity, named 21 Capital, is designed to be a “publicly listed alternative” to Strategy, the bitcoin-heavy firm led by Michael Saylor.
Leadership & structure
Brandon Lutnick, current CEO of Cantor and son of U.S. Commerce Secretary Howard Lutnick, is leading the initiative through Cantor Equity Partners.
This SPAC raised $200 million in January to jumpstart the venture.
Investment breakdown
According to the report, Tether will contribute $1.5 billion in bitcoin, SoftBank will provide $900 million, and Bitfinex will add $600 million.
The combined holdings will be converted into shares of 21 Capital, priced at $10 each—implying a bitcoin valuation of $85,000.
Additional funding plans
Beyond the bitcoin contributions, 21 Capital also plans to raise a $350 million convertible bond and an additional $200 million through private equity for further bitcoin purchases.
Strategy inspiration
The model is inspired by Strategy’s approach of using stock and debt to buy bitcoin.
Strategy currently holds 538,200 BTC and has seen its stock rise 159% over the past year, according to Google Finance.
Timeline & uncertainty
The official announcement is expected in the coming weeks, though sources told the FT the deal could still change or fall through.
