Cantor Fitzgerald is reportedly entering the Bitcoin investment arena with a $3 billion digital asset venture called 21 Capital. This initiative, backed by partners like Tether, SoftBank, and Bitfinex, aims to mirror the success of MicroStrategy in building its Bitcoin holdings.
Unlike MicroStrategy, which acquired Bitcoin directly, 21 Capital will start with contributions from its founding partners. Tether plans to provide $1.5 billion in Bitcoin, with additional contributions from SoftBank and Bitfinex. The company also plans to raise another $550 million through convertible bonds and private equity to further expand its Bitcoin holdings.
To support its operations, Cantor Fitzgerald has partnered with Copper and Anchorage Digital to manage custody and collateral. This move reflects the increasing institutional demand for Bitcoin and offers secure, Bitcoin-backed financing solutions for investors.
This venture by Cantor Fitzgerald follows a trend of traditional financial institutions increasing their exposure to digital assets. Similar to MicroStrategy, which holds a significant amount of BTC, 21 Capital aims to become a dominant player in the market by acquiring more Bitcoin in the future.
SoftBank’s involvement in 21 Capital signals a renewed interest in Bitcoin, despite previous losses from a 2017 investment. The company seems committed to long-term success in the crypto market, as evidenced by recent investments in crypto mining and high-performance computing infrastructure.
Overall, Cantor Fitzgerald’s venture into the Bitcoin investment space with 21 Capital showcases the growing importance of digital assets in traditional financial institutions. With strong backing from partners and plans for significant Bitcoin acquisitions, the company aims to position itself as a key player in the evolving crypto market.
