Brandon Lutnick, chair of the Cantor Fitzgerald brokerage firm, is partnering with Tether, SoftBank, and Bitfinex to create a multibillion-dollar Bitcoin entity. Brandon is the son of Howard Lutnick, former CEO of Cantor Fitzgerald, now serving as Trump’s Commerce Secretary. Cantor Equity Partners will organise the deal, creating a new firm called 21 Capital to raise $3 billion from cryptocurrency investors. Tether will contribute $1.5 billion. SoftBank will contribute $900 million. Bitfinex will contribute $600 million. The proceeds will be made in Bitcoin.
21 Capital will imitate Strategy’s setup, by accumulating a Bitcoin treasury, raising $3 billion through Tether, SoftBank, and Bitfinex, raising $350 million from convertible bonds, and $200 million of private equity. 21 Capital will then convert Bitcoin investments into shares, valued at $10 per share, essentially valuing Bitcoin at $85,000 per coin. Cantor will organise the setup, extending its interest in Bitcoin businesses, such as with the deal with Tether’s $775 million investment in Rumble.
Cantor has not made any specific comments about the deal yet, but is expected to make a formal announcement in the coming days. The strategy closely resembles that of Michael Saylor’s Bitcoin treasury method. Saylor’s company, Strategy, previously called MicroStrategy, used to be a software company, but became a Bitcoin treasury company. Tokyo-listed company Metaplanet took a similar approach, using stock issuances to fund a Bitcoin treasury.
Tether, the largest investor in the agreement, has been ramping up its investments lately in various markets, including artificial intelligence. Tether has enough reserves to invest its money, reporting over $7 billion available. This is not the first time Cantor has collaborated with Tether. The former CEO of Cantor, Howard Lutnick, now works for Trump as commerce secretary. Cantor was essential to the deal between Rumble and Tether. Cantor further manages Tether’s reserves and holds a convertible bond issued by the stablecoin. Brandon Lutnick, son of Howard Lutnick, organised the investment of Tether with Rumble. Brandon is behind the current deal that creates a Strategy like treasury for Tether and Bitfinex.
Cantor has had a long history of crypto dealings. In November 2024, Cantor announced a $2 billion lending program created by Tether and Cantor. Howard Lutnick worked for 4 decades before being appointed as Commerce Secretary by Trump. The announcement of the veteran Cantor CEO also came in November last year. Cantor’s interest in crypto projects has been accelerating in just one year. In March this year, Cantor announced that it would maintain the crypto platforms of Anchorage Digital and Copper.
Cantor has recently described their grim outlook for financial markets, including but not limited to the Dow Jones Index and the S&P 500. Cantor predicts inflated earnings, shocks from tariffs, and slower economic growth. Cantor further explained that many of the current valuations are not taking into account the impact of tariffs and supply chain disruptions. The investment firm argues that America hasn’t seen financial shocks like the current tariffs in quite some time. There is also the problem of foreign capital exodus, which may have already begun. Cantor concludes that markets like Gold and Bitcoin may boom while the rest of the market suffers from economic slowdown. Hence, this may be the reason why Cantor is taking such a consistent interest in cryptocurrency. They may see Bitcoin and other digital assets as essential items to withstand the economic thunderstorms that are brewing on the horizon.
