Market News

US Bitcoin Ventures Surge as $3 Billion Initiative by Cantor Fitzgerald Gains Traction

Brandon Lutnick, the son of U.S. Commerce Secretary Howard Lutnick, is spearheading a significant $3 billion Bitcoin acquisition venture in collaboration with Tether and SoftBank.

The initiative will be carried out through a special purpose acquisition company, Cantor Equity Partners, which successfully raised $200 million earlier this year.

Tether is set to contribute $1.5 billion, with SoftBank adding $900 million and Bitfinex contributing $600 million, totaling the ambitious fund.

This venture aims to establish a new entity named 21 Capital and convert Bitcoin investments into equity at a valuation of approximately $85,000 per coin.

The underlying interest in Bitcoin reflects a burgeoning confidence among institutional investors, especially in light of a favorable regulatory environment under the current administration.

As Bitcoin's price remains robust, hovering around $92,000, firms are increasingly looking to replicate models established by successful initiatives like MicroStrategy.

Furthermore, 21 Capital plans to bolster its investments by raising an additional $550 million through convertible bonds and private equity placements.

While the formal announcement is expected in the coming weeks, the specifics of the arrangement could still evolve or be subject to changes.

This development signifies a critical step in the legitimization of Bitcoin within conventional financial markets and highlights the growing interest among major firms in cryptocurrencies.

As the landscape continues to shift, the strategic position of Tether, SoftBank, and Cantor Fitzgerald may play a pivotal role in the evolution of the U.S. Bitcoin market.