Brandon Lutnick, chair of funding banking agency Cantor Fitzgerald, is reportedly partnering with SoftBank, Tether and Bitfinex to create a $3 billion crypto acquisition firm.
Lutnick and the consortium hope to create a publicly listed crypto acquisition firm to capitalize available on the market underneath crypto-friendly US President Donald Trump, and replicate Michael Saylor’s firm Strategy, the Financial Times reported on April 23, citing three individuals who have been briefed on the plan.
Cantor Equity Partners raised $200 million in January for the brand new agency referred to as 21 Capital. At the identical time, stablecoin issuer Tether will fork out $1.5 billion in Bitcoin (BTC), Japanese funding holding agency Softbank Group will contribute $900 million, and the crypto alternate Bitfinex will add $600 million.
Lutnick’s new venture hopes to lift one other $350 million in convertible bonds and a separate $200 million personal fairness placement to buy additional Bitcoin.
Eventually, Tether, Bitfinex, and SoftBank’s Bitcoin investments shall be transformed into 21 Capital shares, with the worth of the Bitcoin locked in at $85,000 per coin and shares costing $10 a pop.
However, the deal hasn’t been finalized but, and some particulars may change earlier than it’s formally introduced. Brandon Lutnick was named chair of Cantor Fitzgerald when his father, Howard Lutnick, stepped down to become the US Secretary of Commerce.
Cantor Fitzgerald, SoftBank, Tether and Bitfinex didn’t instantly reply to Cointelegraph’s request for remark.
Cantor already effectively versed in crypto market
Cantor Fitzgerald has managed Tether’s Treasury portfolio and $134 billion of reserves, primarily in US Treasury payments, since 2021. The agency additionally owns a 5% stake in the stablecoin issuer.
Previously, Cantor acted in an advisory function for Tether’s $775 million investment in YouTube different Rumble in December final yr.
Related: Commerce Secretary Lutnick walks back tariff relief on electronics
Meanwhile, on March 11, Cantor Fitzgerald mentioned it was rolling out a Bitcoin financing business with $2 billion in preliminary capital to assist institutional traders borrow in opposition to their crypto holdings. Anchorage Digital and Copper had been chosen as Bitcoin custodians and collateral managers.
Cantor Fitzgerald at present holds over $5 billion value of belongings throughout 275 complete holdings, according to Fintel knowledge.
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