Cantor Fitzgerald Eyes MicroStrategy-Style Bitcoin Bet With $3B Initiative

Brandon Lutnick, chair of Cantor Fitzgerald, is spearheading a major initiative to acquire and manage Bitcoin, replicating Strategy’s move. Lutnick, also son of the US Commerce Secretary Howard Lutnick, is working alongside SoftBank, Tether, and Bitfinex to create a multibillion-dollar vehicle designed to replicate the success of companies like MicroStrategy. According to a report by the Financial Times, the effort aims to manage up to $3 billion in Bitcoin assets. Notably, companies like MicroStrategy have shown that large-scale Bitcoin holdings can drive value. Recently, MicroStrategy added 6,556 BTC to its balance sheet, bringing its total to more than 538,000 BTC. This latest acquisition was through the sale of 1.76 million shares of Class A common stock and over 91,000 preferred shares between April 14 and April 20. Other firms, such as Tether, have also been increasing their Bitcoin investments. Tether pulled 8,888 BTC from Bitfinex, its affiliated crypto exchange. Cantor Equity Partners Takes Shape In January, Cantor Equity Partners raised $200 million to launch 21 Capital, a firm set to receive $3 billion in Bitcoin from major crypto players. Tether will contribute $1.5 billion in digital currency, with SoftBank and Bitfinex adding $900 million and $600 million, respectively.  These funds will be managed through 21 Capital, a new entity intended to generate value by leveraging the rising popularity of cryptocurrencies. Notably, Tether and Bitfinex share ownership and leadership under the same parent company, making their involvement a strategic alignment. Convertible Bonds and Equity to Raise Funds To further finance the acquisition, the vehicle plans to raise additional capital. It will issue a $350 million convertible bond and a separate $200 million private placement. These efforts will support the purchase of more Bitcoin, expanding the investment base of 21 Capital.  Eventually, SoftBank, Tether, and Bitfinex will convert their Bitcoin holdings into shares of 21 Capital, with a valuation of $85,000 per Bitcoin. Per the Financial Times, the deal is expected to be finalized in the coming weeks, though some sources caution that the details could still change.