Original Title: "SoftBank Re-enters Bitcoin, This Time Investing in the Son of the U.S. Secretary of Commerce!"
Original Author: KarenZ, Foresight News
Against the backdrop of the Trump administration signaling positive policies towards cryptocurrencies, the American financial services giant Cantor Fitzgerald is collaborating with SoftBank Group, stablecoin issuer Tether, and its affiliated trading platform Bitfinex to prepare a $3 billion Bitcoin joint venture, aiming to seize the opportunity presented by the Trump administration's lenient policies on cryptocurrencies and replicate the successful model of Strategy, which achieved a surge in market value through Bitcoin investments. This move is seen as a landmark event marking the acceleration of traditional financial capital embracing the digital currency market.
How are the transaction details?
According to the Financial Times, citing three informed sources, the special purpose acquisition company (SPAC) named Cantor Equity Partners is led by Cantor Fitzgerald's current chairman Brandon Lutnick. Brandon Lutnick is the son of the current U.S. Secretary of Commerce Howard Lutnick, who will step down as chairman of Cantor Fitzgerald in February 2025 to assume the role of Secretary of Commerce, after which Brandon Lutnick will take over as chairman of the company.
Founded in 1945, Cantor Fitzgerald is a well-established financial services company focusing on institutional equity, fixed income sales and trading, investment banking, real estate financing, and brokerage services, and has actively expanded the integration of cryptocurrencies and traditional finance in recent years. In July 2024, Cantor Fitzgerald announced plans to launch a Bitcoin financing business, offering $2 billion in loans, with the potential to increase the loan amount by another $2 billion in batches as needed, providing leverage for Bitcoin investors. At that time, Howard Lutnick stated that the company also holds a "substantial" amount of Bitcoin.
The Financial Times reported that under the latest plan, in January of this year, Cantor Equity Partners raised $200 million and plans to use these funds to create a new company called 21 Capital, which will absorb $3 billion in Bitcoin from SoftBank, Tether, and Bitfinex to build a publicly listed cryptocurrency investment platform.
The specific funding plan is as follows: Tether has committed to providing $1.5 billion in Bitcoin, while SoftBank and Bitfinex will invest $900 million and $600 million in Bitcoin, respectively. According to the terms, the Bitcoin investments from SoftBank, Tether, and Bitfinex will convert into shares of 21 Capital at a price of $10 per share, valuing Bitcoin at $85,000 each. Additionally, Cantor Equity Partners will issue $350 million in convertible bonds and $200 million in private equity financing (it is unclear if this is the same amount raised in January) to further increase its Bitcoin holdings. The Financial Times cited informed sources stating that although the agreement may be announced in the coming weeks, it may still not materialize, and the transaction figures may change.
Replicating MicroStrategy?
It is evident that the establishment of 21 Capital is largely inspired by the transformation miracle of Strategy (formerly MicroStrategy). MicroStrategy was originally a software company that began aggressively purchasing Bitcoin through stock and bond issuance starting in 2020, and has now become a benchmark for Bitcoin investment in the corporate world, with a market value soaring to $91 billion. As of April 20, 2025, Strategy holds 538,200 BTC, with an average purchase price of $67,766.
The Financial Times reported that this transaction is merely the beginning of Cantor Fitzgerald's layout in the SPAC field. In addition to Cantor Equity Partners, Cantor Fitzgerald has also launched two other SPACs led by Brandon Lutnick, both of which are actively seeking investment opportunities.
Market speculation suggests that 21 Capital will subsequently complete a reverse merger through Cantor Equity Partners, utilizing the flexibility of SPACs and the financing capabilities of the public market to attract more institutional investors into the cryptocurrency market.
Cantor Fitzgerald's Long-standing Cooperation with Tether
Cantor Fitzgerald has a deep-rooted relationship and association with Tether. In November 2024, a report by the Wall Street Journal revealed the close business ties between the two. At that time, Howard Lutnick, then chairman of Cantor Fitzgerald (now U.S. Secretary of Commerce), had a key client who was the mysterious owner of Tether, Giancarlo Devasini (according to Tether's official website, Giancarlo Devasini is currently the chairman of Tether, having previously served as CFO). Most of Tether's $134 billion in assets are held by Cantor Fitzgerald, with a significant portion being U.S. Treasury bonds. Tether holds these U.S. Treasury bonds through custodial services provided by Cantor Fitzgerald to support the value of the stablecoin Tether, and this custodial relationship generates tens of millions of dollars in revenue for Cantor each year.
More notably, the Wall Street Journal also cited information from informed business partners stating that in 2023, Cantor Fitzgerald and Tether reached an agreement where Cantor Fitzgerald holds a 5% equity stake in Tether, which was valued at $600 million at that time.
Giancarlo Devasini privately stated in 2024 that Howard Lutnick might leverage his political influence to alleviate the regulatory pressures faced by Tether. However, a Tether spokesperson later clarified that the collaboration with Cantor Fitzgerald is purely based on a professional management reserve relationship, denying speculation about regulatory influence. Howard Lutnick has also publicly stated that to comply with government ethical standards, he plans to divest his shares in Cantor Fitzgerald. It is worth noting that the U.S. Department of Commerce has historically had a limited role in cryptocurrency regulation.
Additionally, in December 2024, Cantor Fitzgerald facilitated Tether's $775 million investment in the right-wing video platform Rumble, where Cantor Fitzgerald acted as the placement agent and trading broker.
It is noteworthy that Rumble is a conservative-leaning video sharing platform, primarily used by Trump supporters, libertarians, and anti-mainstream media groups. Although Tether CEO Paolo Ardoino stated at the time that "Tether's investment in Rumble reflects our shared values: decentralization, independence, transparency, and the fundamental right to free speech," this investment was viewed by outsiders as a case of cryptocurrency capital expanding into politically connected media. At the end of November 2024, Rumble's board approved a corporate treasury diversification strategy, which includes a Bitcoin allocation strategy allowing the company to independently decide to purchase up to $20 million in Bitcoin. Subsequently, in January 2025, Rumble purchased $17.1 million worth of Bitcoin.
As a traditional investment bank, Cantor Fitzgerald is gradually deepening its involvement in the crypto ecosystem through participation in such transactions. This collaboration with SoftBank, Tether, and Bitfinex represents another significant layout for Cantor Fitzgerald in the cryptocurrency field.
SoftBank's Path in Crypto
The $3 billion Bitcoin joint venture between Cantor Fitzgerald, SoftBank, and Tether also reflects SoftBank's formal entry into the Bitcoin market. The investment giant's journey in crypto has been tumultuous: according to a Wall Street Journal report, at the end of 2017, founder Masayoshi Son made a significant bet on Bitcoin but lost $130 million when prices plummeted in early 2018. The Vision Fund under SoftBank had previously invested nearly $100 million in FTX. This participation in Bitcoin investment through a SPAC structure indicates a more cautious and institutionalized investment strategy.
Summary
For 21 Capital, its future success will depend on several key factors. First is the long-term trend of Bitcoin prices; as the dominant cryptocurrency in the market, Bitcoin's price fluctuations directly impact the asset value and investment returns of 21 Capital. Secondly, the specific implementation of the Trump administration's cryptocurrency policies is also crucial; if the policies can maintain a friendly attitude towards cryptocurrencies and provide a clear regulatory framework, it will benefit the development of 21 Capital. Additionally, the execution of the SPAC transaction will determine whether 21 Capital can successfully achieve its goals; if legal, financial, or other issues arise during the transaction process, it may hinder the project's progress. If the transaction is successfully completed, it is likely to trigger more traditional financial institutions to follow suit, thereby accelerating the integration of cryptocurrencies and traditional finance.
With the entry of traditional financial giants like Cantor Fitzgerald and SoftBank, the cryptocurrency market is entering a new stage of development, with a surge in demand for institutional investors to establish compliant investment channels. This cross-industry collaboration has the potential to reshape the institutional allocation landscape of digital assets, possibly attracting more traditional financial institutions to reassess the cryptocurrency market, leading to increased capital inflow into the sector, and subsequently changing the status and proportion of digital assets in institutional portfolios. Of course, 21 Capital has also sparked market discussions due to its intricate political and business networks behind it.
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