Cantor Fitzgerald is in the final stages of launching a $3 billion Bitcoin acquisition vehicle with support from industry heavyweights such as SoftBank, Bitfinex, and Tether. The move, described as a MicroStrategy clone by experts like Syncracy Capital co-founder Ryan Watkins, has garnered attention for its potential impact on the Bitcoin market.
The new venture, spearheaded by Cantor Fitzgerald through its corporate entity 21 Capital, will be funded by Tether’s $1.5 billion, SoftBank’s $900 million, and Bitfinex’s $600 million contributions. This significant investment comes on the back of Cantor’s previous $2 billion Bitcoin financing business, which saw the brokerage partner with Anchorage as a custodial partner.
The comparison to MicroStrategy, a publicly-traded company known for its significant Bitcoin acquisitions, raises questions about the potential bubble behavior that may arise from such large-scale investments. Despite concerns raised by experts like Ryan Watkins, others argue that the move aligns with US President Trump’s executive order to establish a Strategic Bitcoin Reserve.
The announcement of Cantor’s $3 billion Bitcoin venture has caused a positive reaction in the cryptocurrency market, with Bitcoin price rising to a two-week high of $93,000. However, there are fears that the rally may not be sustainable, with some predicting a potential drop back to $80,000 in the near future.
Industry analysts and experts continue to closely monitor Cantor Fitzgerald’s Bitcoin acquisition plans, as the launch of the $3 billion venture could have far-reaching implications for the cryptocurrency market. With support from major players like SoftBank, Tether, and Bitfinex, the success of this initiative could pave the way for similar large-scale investments in Bitcoin and other cryptocurrencies.
