In a recent report by The Financial Times, Brandon Lutnick, who is the son of Howard Lutnick, United States Commerce Secretary and chair of Cantor Fitzgerald, is forming a partnership with crypto giants Tether and Bitfinex, as well as Softbank, to create a multibillion-dollar acquisition vehicle. This project, named Cantor Equity Partners, will create a firm that will be publicly listed as 21 Capital. The acquisition vehicle will receive a total of $3 billion in Bitcoin, which will come from its various partner firms.
Having already secured $200 million from Cantor Equity Partners, 21 Capital will receive Bitcoin worth $1.5 billion from Tether, $900 million from Bitfinex, and $900 million from Softbank. The strategy is to raise $350 million from convertible bonds and secure $200 million through private equity so it can purchase more Bitcoin.
The venture is aiming to take advantage of Trump’s vision to make the US a global crypto hub. Following the success of Strategy (formerly MicroStrategy), a company owned by Michael J. Saylor, Cantor Fitzgerald and its partners are looking to key into this market and grow the firm.
Just like Strategy and 21 Capital, many businesses and individuals are looking to integrate cryptocurrency into their financial strategies. With a focus on Bitcoin, these companies are making plans to buy the king coin in bulk quantities, to hold or even incorporate it in their day-to-day transactions. Following this trend, these businesses and individuals rely on crypto wallets where they can securely and easily buy Bitcoin. On some of these platforms, investors can also use their credit card, debit card, or even swap other cryptocurrencies to get Bitcoin, all from the convenience of their smartphone. (Source: https://bestwallet.com/en/buy-crypto/bitcoin/).
While the deal hasn’t been officially announced and is still subject to change, the current deal would see Softbank, Bitfinex, and Tether’s Bitcoin investments turned into shares at 21 Capital. The Bitcoin value per coin will be tagged at $85,000, but shares will have a price of $10 each. Howard Lutnick, the billionaire who headed Cantor Fitzgerald for 40 years, stepped down recently to run the Commerce Department in President Trump’s administration. In his absence, Brandon and Kyle Lutnick, both sons, have taken up leadership roles at the company. They will serve the company as Chairman and also as executive vice chairman, respectively.
With several years under Cantor Fitzgerald’s belt in the crypto space, the decision to establish 21 Capital is a very calculated one. Already, Cantor Fitzgerald has been working with Tether’s Treasury since 2021 and owns 5% of the stablecoin issuer. It has previously entered the Bitcoin market by putting up a $2 billion fund to help institutions use their Bitcoin reserves as collateral when securing financing for their businesses. With this fund, businesses don’t have to sell their assets to secure finances, a move that shows the commitment and expertise of Cantor Fitzgerald when it comes to integrating cryptocurrency into traditional financial systems.
By riding on Trump’s executive order to establish a Strategic Bitcoin Reserve, Cantor Fitzgerald is positioning itself as a key player in the finance industry. It is essentially betting that the use of crypto will go mainstream in America with its new venture, which will make this investment worth it. If that happens, it will be a major shift in the finance sector, with companies like Cantor Fitzgerald leading the way.