$3B Bitcoin Venture by Cantor Fitzgerald
Cantor Fitzgerald Launches $3 Billion Bitcoin Venture
Cantor Fitzgerald, in collaboration with SoftBank, Tether, and Bitfinex, is building a $3 billion Bitcoin investment venture. This ambitious project aims to capitalize on the perceived pro-crypto shift in US policy. The initiative is spearheaded by Brandon Lutnick, son of Cantor Fitzgerald chairman Howard Lutnick.
Key Aspects of the Venture:
- New Firm: The consortium will launch a new firm, 21 Capital, leveraging $200 million raised in January through Cantor Equity Partners, a recently established SPAC.
- Funding Breakdown: 21 Capital will receive $1.5 billion in Bitcoin from Tether, $900 million from SoftBank, and $600 million from Bitfinex. Additional funding will come from a $350 million convertible bond and a $200 million private equity placement.
- Investment Strategy: 21 Capital will mirror MicroStrategy's (now Strategy) successful Bitcoin acquisition strategy, aiming to replicate its market success.
- Bitcoin Valuation: The partners' Bitcoin investments will be converted into 21 Capital shares at $10 per share, effectively valuing Bitcoin at $85,000 per coin.
This venture significantly expands Cantor Fitzgerald's presence in the digital asset market, following its advisory role in Tether's investment in Rumble. The partnership seeks to leverage the ongoing positive momentum surrounding Bitcoin and capitalize on current market conditions.
Codeum's Note: At Codeum, we provide comprehensive blockchain security services, including smart contract audits, KYC verification, and custom smart contract & DApp development. Our expertise helps ensure the security and success of blockchain projects like this. Contact us to learn more about how we can help secure your next venture.
MicroStrategy's Influence:
The success of Strategy (formerly MicroStrategy), known for its aggressive Bitcoin acquisition strategy, is a clear inspiration for this new venture. Strategy's Bitcoin holdings have contributed to its presence on the Nasdaq-100, and despite recent market volatility, its share price shows a 159% return over the past year.