Cantor to Replicate Strategys Bitcoin Policy in New $3 Billion Crypto Push

Cantor Fitzgerald, one of Wall Streets oldest investment firms, is set to make a major move in the cryptocurrency space by launching a new $3 billion Bitcoin-focused venture that aims to mirror that of Bitcoin development firm Strategy (formerly Microstrategy)

According to a Wednesday report by the Financial Times, the venture, called 21 Capital, is being led by Brandon Lutnick, the newly appointed chairman of Cantor Fitzgerald and son of U.S. Commerce Secretary Howard Lutnick.

Notably, 21 Capital will be funded through a consortium of prominent backers, including Tether, SoftBank, and Bitfinex. These investors are expected to contribute their stakes entirely in Bitcoin rather than fiat currency. This decision underscores the groups long-term conviction in Bitcoin as a strategic treasury asset.

As per the report, Tether, the issuer of the worlds largest stablecoin, will contribute $1.5 billion worth of Bitcoin, while Japanese investment giant SoftBank will inject $900 million, and crypto exchange Bitfinex will add $600 million, bringing their total contributions to $3 billion in BTC. These assets will eventually be converted into shares of 21 Capital at a rate of $85,000 per Bitcoin and $10 per share.

Notably, Cantor Equity Partners, the investment arm overseeing the new initiative, previously raised $200 million in January to lay the groundwork for 21 Capital. Additional funding is being pursued through a $350 million convertible bond issuance and a $200 million private equity placement. The aim is to leverage this capital to accumulate even more Bitcoin in anticipation of rising institutional demand.

That said, the ventures strategic direction mirrors that of Michael Saylors Strategy, which made headlines in 2020 by adopting Bitcoin as its primary reserve asset. As of April 23, Strategy held approximately 531,644 bitcoins, valued at just over $44 billion at current market prices. With 21 Capital planning to do the same, the firm could become one of the largest corporate holders of Bitcoin in the world and set a new precedent for institutional adoption.

However, although the final terms of the venture are still being negotiated and subject to change, insiders say an official announcement could arrive within weeks.

Meanwhile, the move also comes at a time when political winds in Washington are turning in favor of crypto. President Donald Trump, who has dubbed himself the crypto president, has publicly supported Bitcoin adoption as a tool to modernize the U.S. financial system and reinforce the dominance of the U.S. dollar on the global stage.

Text source: ZyCrypto

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