Cantor Fitzgerald is reportedly stepping into the Bitcoin investment space with plans to launch a $3 billion digital asset venture. Financial Times It was reported on April 23rd.
The initiative is supported by heavyweight partners, including Stablecoin Issuer Tether, SoftBank, and Crypto Platform Bitfinex.
21 Capital
The venture, named 21 Capital, will use $200 million in seed funds protected by Cantor Equity Partners in January.
Brandon Rutnick, son of U.S. Secretary of Commerce Howard Rutnick, leads the effort. The company is currently aiming to reflect a Bitcoin-centric process that has changed its micro-tactics that have now been rebranded as a strategy and transformed into a dominant market force.
Unlike the strategy of directly purchasing Bitcoin to build a holding, 21 Capital starts with a contribution from its founding partners. Tether is expected to provide $1.5 billion worth of Bitcoin. SoftBank adds $900 million, while Bitfinex will donate $600 million.
Beyond these initial assets, 21 Capital is planning to raise an additional $550 million. This includes $350 million from convertible bonds and $200 million through private equity. Fresh Capital will go further towards a Bitcoin acquisition, ensuring the company competes with existing public companies that hold large crypto reserves.
To support its operations, Canter Fitzgerald has implemented Copper and Anchorage Digital to manage custody and collateral. The goal is to provide a secure, Bitcoin-assisted financing solution tailored to institutional investors.
Institutional demand for Bitcoin will increase
The venture highlights the growing trend of traditional financial institutions increasing exposure to digital assets.
Cantor Fitzgerald’s Move reflects the shift that made the strategy a top stock performer by providing investors with indirect Bitcoin exposure.
Currently, the strategy has over 534,000 BTC, worth nearly $500 billion, making it the largest corporate holder of Top Crypto Asset.
Meanwhile, SoftBank’s participation in 21 Capital marks a new bet on Bitcoin.
Vaneck’s Mathew Sigel noted that after a $200 million BTC investment in 2017 was inadequate, the company’s CEO Masayoshi Son reportedly lost more than $130 million.
However, this time SoftBank appears to be committing to the long term. Earlier this year, it invested $50 million in crypto mining and negotiated to support high-performance computing infrastructure, but the deal fell.
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