Cantor Fitzgerald Prepares to Launch a Groundbreaking $3 Billion Bitcoin Investment Vehicle in Partnership with SoftBank, Tether, and Bitfinex.

The move marks a significant institutional push into digital assets as interest in cryptocurrencies regains momentum amid favorable political conditions

Cantor Fitzgerald is reportedly planning to launch a $3 billion Bitcoin investment vehicle with contributions from SoftBank, Tether, and Bitfinex, sources familiar with the matter told ChainGPT on Wednesday.

The initiative will see the formation of a new company, 21 Capital, by Cantor Equity Partners—a SPAC that raised $200 million earlier this year. The SPAC will then merge with 21 Capital, valuing the venture at $3 billion and setting the stage for a public listing of the investment vehicle.

The consortium members will contribute their respective portions of the $3 billion investment, which will be used to purchase Bitcoin at an implied price of about $85,000 per coin. This valuation is significantly higher than current market prices, reflecting the consortium’s bullish outlook on Bitcoin’s long-term potential.

In addition to the consortium members' contributions, the venture aims to secure further funding through a $350 million convertible bond issuance and a $200 million private equity placement.

The capital raised will enable 21 Capital to acquire and solidify its Bitcoin holdings, and potentially expand into other crypto-related initiatives, creating a diversified portfolio of digital assets.

This model closely resembles MicroStrategy's strategy of leveraging traditional capital markets to aggressively accumulate Bitcoin. By following a similar trajectory, Cantor Fitzgerald is positioning itself as a dominant institutional player in the cryptocurrency space.

The involvement of household names such as SoftBank also adds considerable credibility and visibility to the venture. However, the project may face scrutiny from regulators, particularly given past legal settlements involving Tether and Bitfinex.

The consortium will need to navigate regulatory complexities carefully to maintain momentum and investor confidence in the venture.

If successful, 21 Capital could become one of the largest known institutional holders of Bitcoin, potentially surpassing even the largest mining pools.

This move would reshape how traditional finance is engaging with cryptocurrency as Bitcoin continues to inch closer to its all-time highs.