According to the Financial Times, Brandon Lutnick, son of U.S. Commerce Secretary Howard Lutnick, is partnering with Tether, SoftBank, and Bitfinex to make a major push into the cryptocurrency market amid increasing crypto-friendliness from the Trump administration.
Citing three people familiar with the matter, the report states that the group plans to launch a multibillion-dollar Bitcoin investment firm called 21 Capital. The goal is to replicate the transformation strategy of software company MicroStrategy by accumulating large amounts of Bitcoin from its partners to create a crypto-focused holding company.
Brandon Lutnick’s move is seen as a strategic attempt to gain influence in the ongoing crypto investment boom. After his father took a senior trade role under the Trump administration, Brandon assumed the position of Chairman of brokerage firm Cantor Fitzgerald. He will lead the new initiative through the special-purpose acquisition company (SPAC) Cantor Equity Partners.
Reportedly, Cantor Equity Partners raised $200 million in January this year to fund the creation of 21 Capital. The firm plans to acquire $3 billion worth of Bitcoin assets from its partners:
- Tether will contribute $1.5 billion in Bitcoin
- SoftBank will invest $900 million
- Bitfinex will contribute $600 million
In addition, 21 Capital will raise an additional $550 million through the issuance of $350 million in convertible bonds and $200 million in private equity, further expanding its Bitcoin holdings.
Eventually, the partner firms will convert their Bitcoin contributions into shares of 21 Capital at a price of $10 per share, giving an implied valuation of $85,000 per Bitcoin.
Sources say the deal is expected to be publicly announced in the coming weeks, but also note that details remain subject to change.
