Cantor Fitzgerald Chair Brandon Lutnick Is reportedly Creating a Consortium with SoftBank, Tether and Bitfinex to Buy Bitcoin

Citing people familiar with the matter, the Financial Times reports that Brandon Lutnick, son of US Commerce Secretary Howard Lutnick, is joining hands with the three firms to create a multibillion-dollar Bitcoin (BTC) acquisition vehicle that aims to replicate the success of MicroStrategy, the largest corporate holder of the flagship cryptocurrency.

A report by the Financial Times says the chair of brokerage company Cantor Fitzgerald is assembling a consortium with SoftBank, Tether and Bitfinex to form a vehicle for buying Bitcoin (BTC).

Citing people familiar with the matter, the FT reports that Brandon Lutnick, son of US Commerce Secretary Howard Lutnick, is joining hands with the three firms to assemble a multibillion-dollar crypto acquisition company. The vehicle aims to replicate the success of MicroStrategy (NASDAQ:MSTR), the largest corporate holder of Bitcoin.

In January, the special purpose acquisition company called Cantor Equity Partners closed on a $200 million SPAC and will be used to build 21 Capital. The vehicle will also receive $3 billion in Bitcoin from the partners.

Stablecoin issuer Tether will contribute $1.5 billion in BTC while Japanese multinational investment holding company Softbank and crypto exchange Bitfinex will give $900 million and $600 million, respectively, of the crypto asset. The investments, valued at $85,000 per BTC, will be converted into shares in 21 Capital at $10 per share.

The vehicle also plans to raise a $350 million convertible bond and a $200 million private placement of equity to buy more Bitcoin.

The sources say the deal will likely be announced in the coming weeks, but caution that it may not push through, or the numbers could change.

The report comes after rumors of a partnership between SoftBank and Bitfinex to launch a crypto derivatives exchange. In January, rumors swirled online that the Japanese firm was planning to contribute $1 billion to the exchange, while Bitfinex would add $500 million.

The partnership never materialized, but the FT now reports that the two firms are joining forces with Cantor Fitzgerald and Tether to form a Bitcoin acquisition vehicle. The vehicle will reportedly be announced in the coming weeks.