Brandon Lutnick Leads $3 Billion Bitcoin Venture Backed by Tether and SoftBank
They’re not just mimicking MicroStrategy but potentially trying to outmaneuver it with more direct control over the BTC supply.
Brandon Lutnick, the son of U.S. Commerce Secretary Howard Lutnick, is leading an ambitious multibillion-dollar Bitcoin initiative that includes significant players such as Cantor Fitzgerald, Tether, SoftBank, and Bitfinex.
The plan revolves around creating a new company called 21 Capital, which aims to replicate MicroStrategy’s successful investment strategy, known for its substantial corporate holdings of Bitcoin.
Brandon Lutnick Joins Forces with Tether
According to sources familiar with the situation, the partners have committed a staggering $3 billion worth of Bitcoin to this initiative. Tether will contribute $1.5 billion, and SoftBank plans to invest $900 million.
Bitfinex, closely linked to Tether through shared leadership, is anticipated to add another $600 million in Bitcoin.
The newly formed 21 Capital will incorporate these digital assets, aiming to position itself as a significant player in the rapidly evolving crypto market.
Brandon Lutnick is at the forefront of this initiative, working through Cantor Equity Partners, a special purpose acquisition company (SPAC) that successfully raised $200 million earlier this year.
This SPAC will provide the funding necessary for establishing 21 Capital, which also intends to pursue a $350 million convertible bond and a $200 million private equity placement. These additional funds will further enhance the entity’s Bitcoin holdings, allowing for greater investment capability.
A Strategic Bet on Bitcoin’s Future
The strategy goes beyond merely acquiring cryptocurrency. The backers plan to convert their Bitcoin holdings into equity shares in 21 Capital.
Furthermore, we will price each share at $10, internally valuing Bitcoin at a hopeful $85,000 per coin.
This signifies their strong confidence in Bitcoin’s potential for growth, especially in a U.S. administration that appears more supportive of digital assets.
Furthermore, it positions 21 Capital as a serious contender to become a prominent name in cryptocurrency investing. If this initiative proves successful, it could significantly change how institutional investors approach Bitcoin, potentially accelerating its wider adoption and increasing the market’s maturity.
