Cantor Fitzgerald, Tether, SoftBank, and Bitfinex Plan Multi-Billion Bitcoin Venture

Brandon Lutnick, recently named chairman of Cantor Fitzgerald, is reportedly working with SoftBank, Tether, and Bitfinex on the formation of a $3 billion Bitcoin and digital asset acquisition company, according to a report from the Financial Times.

The proposed venture, named 21 Capital, aims to become a publicly listed company focused on large-scale investments in Bitcoin and digital assets. 

Jack Mallers, founder of Strike, will serve as CEO, bringing deep expertise in Bitcoin infrastructure and global payment systems to guide the firm’s strategy. 

The initiative draws inspiration from corporate models that have previously allocated significant capital to Bitcoin. In January, Cantor Equity Partners secured $200 million in initial funding to launch the project.

According to sources cited by the Financial Times, contributions to the planned $3 billion fund include $1.5 billion in Bitcoin from Tether, $900 million from SoftBank Group, and $600 million from Bitfinex. 

The group is also aiming to raise an additional $550 million through a combination of convertible bonds and private equity placements to support further Bitcoin acquisitions.

As outlined in preliminary materials, the Bitcoin contributed by Tether, SoftBank, and Bitfinex would eventually be converted into equity in 21 Capital, based on a fixed Bitcoin valuation of $85,000 and a share price of $10. 

The terms of the arrangement have not been finalized and remain subject to change.

Brandon Lutnick assumed the role of chair at Cantor Fitzgerald following his father, Howard Lutnick’s appointment as U.S. Secretary of Commerce.

Cantor Fitzgerald has been managing Tether’s Treasury portfolio since 2021, overseeing approximately $134 billion in reserves, primarily composed of U.S. Treasury securities. The firm also maintains a 5% equity stake in Tether. 

In December 2024, Cantor served as an advisor for Tether’s $775 million investment in video-sharing platform Rumble.

In addition, Cantor announced a separate $2 billion Bitcoin lending initiative in March, aimed at institutional investors seeking to borrow against digital asset holdings. 

Custody and collateral management services for the program are being provided by Anchorage Digital and Copper. According to Fintel, Cantor currently manages more than $5 billion in assets across 275 holdings.