Cantor Launches $3B Bitcoin Firm with Tether, SoftBank & Bitfinex
In a move that heralds the convergence of traditional finance and crypto, Cantor Fitzgerald, together with Tether, SoftBank, and Bitfinex, has introduced 21 Capital, a $3 billion investment firm dedicated to Bitcoin. The news was first broken by the Financial Times.
21 Capital's goal is to build up a significant position in Bitcoin, monetize it into company shares, and bring the company public, making Bitcoin a fundamental institutional asset.
A $3 Billion Initiative for Bitcoin Investment
21 Capital, which just got off the ground, has backing from:
- Tether: $1.5 billion in Bitcoin
- SoftBank: $900 million
- Bitfinex: $600 million
- Cantor Equity Partners: $200 million
According to the deal, these crypto investments will be exchanged for equity shares in 21 Capital. The Bitcoin was valued at $85,000 per coin, and the shares are being offered at $10 each. This will make each partner a substantial equity owner in the firm.
Future Plans for Funding and Expansion
21 Capital is to raise another $550 million, including:
- $350 million through convertible bonds
- $200 million through private equity
The money will be utilized to buy more Bitcoin and further grow the company's leadership in the digital asset market.
Cantor's Ongoing Wager on Crypto
Cantor Fitzgerald has had its toe in crypto for a long time. Since 2021, it has managed Tether's U.S. Treasury reserves, taking a 5% equity position in the stablecoin issuer. It also opened a $2 billion Bitcoin financing fund, enabling institutions to lend against their crypto holdings.
Also Read: LAI Crypto Coin Jumps 3.8% in 24 Hours: What’s Driving the Surge?
A MicroStrategy-Inspired Strategy
Similar to Michael Saylor's strategy at MicroStrategy, 21 Capital seeks to make Bitcoin a fundamental balance sheet asset. The firm is looking to take advantage of potentially crypto-friendly regulations under a second Donald Trump administration in the United States.
Conclusion
The creation of 21 Capital marks a historic convergence of Wall Street and the crypto universe. By valuing Bitcoin as a convertible investment security and advocating for public listing, Cantor and its collaborators are opening doors for crypto's mainstream institutional acceptance. The alliance could be a game-changer not just for Bitcoin but for the overall digital asset community.
