Cantor, Tether, and SoftBank Launch $3B Bitcoin Acquisition VehicleÂ
Investment giant Cantor Fitzgerald has joined forces with SoftBank, Tether, and Bitfinex to launch 21 Capital, a Bitcoin acquisition venture with an initial capitalization of $3 billion.
Cantor Fitzgerald, led by Brandon Lutnick (the son of U.S. Commerce Secretary Howard Lutnick), has announced a new venture called 21 Capital in partnership with SoftBank, Tether, and Bitfinex, the Financial Times reported. The firms will establish a joint crypto investment fund valued at approximately $3 billion.
The project will operate under Cantor Equity Partner, a special purpose acquisition company (SPAC), which raised $200 million in January.
According to the report, 21 Capital plans to:
- Accumulate Bitcoin on its corporate balance sheet, following the model used by Michael Saylor's Strategy
- Bring its investment product to public markets through convertible bonds and private equity placements
Related: Howard Lutnick: From Wall Street Powerhouse to Crypto Advocate in the Trump Administration
Consortium Structure and Funding Breakdown
Participants in the project are contributing crypto assets in the following amounts:
- Tether – $1.5 billionÂ
- SoftBank – $900 millionÂ
- Bitfinex – $600 millionÂ
The funds are being supplied in cryptocurrency rather than fiat, signaling growing confidence in digital assets among large institutional investors.
In addition to Bitcoin contributions, 21 Capital plans to issue $350 million in convertible bonds and raise $200 million through a private equity placement. The bond proceeds will be used to purchase cryptocurrency at market value.
After the capital structure is finalized, project partners will convert their Bitcoin holdings into 21 Capital shares at a price of $10 per share. The valuation implies a Bitcoin price of $85,000 and sets the company’s breakeven point.
The structure aims to offer transparent asset valuation and provide attractive conditions for investors who favor conventional financial instruments.
You might also like: Tether Acquires 8,888 Bitcoin in Q1 2025, Becoming Sixth Largest Holder of BTC
Project Objective and Market Context
The founders are taking inspiration from Strategy, the firm led by Michael Saylor, which has built a portfolio of more than 538,200 BTC and reached a market capitalization of around $91 billion. The aim is to offer a public investment vehicle targeted at a broader audience seeking exposure to Bitcoin.
Related: Strategy Expands Bitcoin Holdings with $285M Purchase of 3,459 BTC
The project comes against the backdrop of promises from President Donald Trump's administration to adopt more crypto-friendly policies, contributing to a resurgence of interest in digital assets among large investment funds.
Following Donald Trump's election victory, the price of Bitcoin rose to around $106,000 and is currently trading near $92,000.
However, analysts have highlighted potential risks. The deal may still be modified or delayed, and both Tether and Bitfinex have previously settled major regulatory disputes with the New York Attorney General and the U.S. Commodity Futures Trading Commission (CFTC).
Moreover, financial experts note that the success of 21 Capital will ultimately depend on the team’s ability to manage large volumes of crypto assets in a volatile market environment.
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