Massive $3 Billion Bitcoin Fund Takes Shape with Cantor, SoftBank, Tether

Financial services firm Cantor Fitzgerald is reportedly on the verge of launching a $3 billion cryptocurrency venture in collaboration with SoftBank, Tether, and Bitfinex, according to a report published in the Financial Times. The initiative, spearheaded by Brandon Lutnick, son of U.S. Commerce Secretary Howard Lutnick, aims to capitalize on the renewed interest in digital assets under the current U.S. administration.

The consortium is establishing a bitcoin acquisition vehicle, tentatively named 21 Capital, which will absorb billions of dollars in cryptocurrency from its partners. The goal, according to sources briefed on the matter, is to emulate the success of Strategy (formerly MicroStrategy), a company that saw its valuation skyrocket after pivoting to bitcoin as a primary treasury asset.

Brandon Lutnick, who assumed the chairmanship of Cantor Fitzgerald when his father became President Trump's top trade envoy, is positioning himself and his firm at the forefront of a potential cryptocurrency investment boom. Strategy's playbook of issuing stock and speculative debt to amass a significant bitcoin stockpile has made it a market sensation, boasting a $91 billion public market capitalization and holding tens of billions of dollars in the digital asset.

Lutnick's vehicle, operating through Cantor Equity Partners, a special purpose acquisition company (SPAC) that raised $200 million in January, seeks to create a publicly listed alternative alongside some of the cryptocurrency industry's largest and often most debated players.

The Financial Times reports that 21 Capital is slated to receive $3 billion in bitcoin from its partners: $1.5 billion from Tether, $900 million from SoftBank, and $600 million from Bitfinex. Tether and Bitfinex share the same parent company and some leadership.

Furthermore, Lutnick's vehicle intends to raise an additional $350 million through a convertible bond and a separate $200 million via a private equity placement to acquire more bitcoin. The agreement reportedly outlines that SoftBank, Tether, and Bitfinex will eventually convert their bitcoin contributions into shares of 21 Capital at $10 per share, valuing the digital currency at $85,000/BTC.

The potential deal comes at a time when the Trump administration has signaled a more accommodating stance towards cryptocurrency trading. Cantor Fitzgerald has already benefited from this shift, having advised on Tether's $775 million investment in the right-wing video-sharing platform Rumble.

This crypto tie-up represents the first of potentially several SPAC deals being led by Cantor Fitzgerald. The brokerage, through vehicles led by the younger Lutnick, is actively seeking further acquisition opportunities.

Cantor Fitzgerald declined to comment on the report. SoftBank, Tether, and Bitfinex did not immediately respond to requests for comment.