Lutnick Launches $3B Bitcoin Venture with Tether, SoftBank, And Bitfinex

Cantor Fitzgerald Chairman Brandon Lutnick, son of United States Commerce Secretary Howard Lutnick, announced Wednesday a strategic $3 billion crypto collaboration with Tether, SoftBank, and Bitfinex.

The latest initiative, managed by Cantor Equity Partners, is set to launch a new entity called 21 Capital, with a core focus on large-scale Bitcoin investments.

The Financial Times report noted that Lutnick and his partners aim to form a publicly traded crypto acquisition firm, leveraging favorable market conditions under President Donald Trump’s crypto-friendly administration. Notably, the move aspires to emulate the success of the largest BTC corporate holder, Strategy.

Lutnick Welcomes Strategic Investments

The financial backing comprises $1.5 billion in BTC contributed by Tether, $900 million from SoftBank, and $600 million from Bitfinex. The venture will also raise $350 million through a convertible bond and secure an additional $200 million through a private equity placement.

Meanwhile, Tether recently acquired approximately 8,888 BTC worth $735 million, bringing its BTC holding to about 100,521 BTC, valued at $8.46 billion. Tether ranks in third position as the largest cryptocurrency by market capitalization. Its market cap is $145.2 billion.

Remarkably, the strategic plan is to convert bitcoin assets into common stock at $10 per share, which implies a bitcoin price of $85,000.

The latest initiative reflects a growing institutional interest in digital assets, particularly in light of the Trump administration’s favorable stance on cryptocurrency assets. While Tether and Bitfinex have faced regulatory scrutiny in the past, the transaction signals confidence in the crypto space. Nevertheless, the deal is still in a preliminary phase and is subject to potential revisions. 

5% Equity Stake

Interestingly, before the recent development, Cantor Fitzgerald has overseen the management of Tether’s Treasury portfolio since 2021, including $134 billion in reserves.  Additionally, the firm holds a 5% equity stake in the stablecoin issuer.

Also, after advising Tether on its $775 million investment in Rumble in December, Cantor Fitzgerald continued its crypto push by launching a $2 billion bitcoin financing venture in March.

The initiative, designed to support institutional investors in borrowing against their crypto holdings, brought in Anchorage Digital and Copper as trusted custodians and collateral managers.

According to data from Fintel, a provider and tool for small investors, the firm’s $5 billion asset base is diversified across 275 separate holdings, indicating a broad investment strategy.

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