A $3 billion Bitcoin venture is planned by Cantor Fitzgerald along with SoftBank, Tether, and Bitfinex.
Cantor Fitzgerald plans to set up “21 Capital” and follow the lead of MicroStrategy in Bitcoin accumulation. Cantor Fitzgerald is stepping forward to create a Bitcoin investment vehicle. The son of the US Commerce Secretary, Howard Lutick, leads the firm and plans to initiate a $3 billion Bitcoin venture. This initiative gathered support from other industry giants such as SoftBank, Tether, and Bitfinex. The Financial Times reported earlier today regarding Cantor Fitzgerald’s plan to create a Bitcoin venture. It stressed the contribution of favorable crypto policies in the country to Cantor’s plans. The collaboration of Cantor with SoftBank, Tether, and Bitfinex aims to create a multi-billion-dollar Bitcoin investment vehicle.
Cantor Fitzgerald to Follow the Lead of MicroStrategy
People familiar with this matter revealed the news to the Financial Times. They also mentioned that this collaboration aims to mirror the success of MicroStrategy. Strategy, formerly known as MicroStrategy, is originally a software solution company, but gained popularity after it started acquiring Bitcoin. Strategy’s latest Bitcoin purchase of 6,556 Bitcoins has fostered Strategy’s position as the top corporate firm in terms of Bitcoin holdings. The firm has made it a tradition to announce its stock offerings and use the funds for Bitcoin purchases. Bloomberg also reported Cantor Fitzgerald’s plans to establish a Bitcoin venture. The firm plans to follow the lead of Strategy in terms of Bitcoin acquisition, but it aims to create a publicly listed alternative entity to Strategy. This Bitcoin investment vehicle will be named 21 Capital as per the Financial Times report.
Cantor will receive the following amount of funds from its partners:
- SoftBank – $900 million
- Tether – $1.5 billion
- Bitfinex – $600 million
Furthermore, Cantor’s upcoming Bitcoin investment vehicle will also raise an additional $350 million from convertible bonds. A private placement of equity will bring another $200 million to help Cantor in its Bitcoin purchases. All of these funds will eventually create 21 Capital and will be used for Bitcoin acquisition.
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