Bitcoin Fund Worth $3 Billion Set to Launch
Get Ready for the Bitcoin Bonanza: 21 Capital, a Groundbreaking Collab
Say hello to 21 Capital, a game-changing Bitcoin-oriented fund co-created by American heavyweight Cantor Fitzgerald, Japanese investment powerhouse SoftBank, digital coin exporter Tether, and crypto exchange Bitfinex. This new kid on the block is all set to replicate the triumph of Strategy, a publicly traded corporation that sponsors Bitcoin investments.
Leading the charge for this mega-fund is Cantor's chairman, Brandon Lutnick, son of former U.S. Trade Representative Howard Lutnick, who's making the move through a special purpose acquisition company (SPAC) named Cantor Equity Partners. The company bagged $200 million in January and is gearing up for its initial public offering.
Biting the Bitcoin Apple
Tether adds $1.5 billion in Bitcoin to the fund, SoftBank chips in $900 million, and Bitfinex tosses in $600 million. Notably, Tether and Bitfinex share the same parent company. On top of these investments, the fund intends to issue $350 million in convertible notes and gather $200 million in private equity to amass more Bitcoin. These Bitcoin contributions will then be transformed into 21 Capital shares at a price of $10, thus valuing Bitcoin at around $85,000.
Time for a 21st-Century Leap
According to the Financial Times, 21 Capital marks the initial wave of potential SPACs led by Cantor Fitzgerald. Matthew Sigel, head of digital asset strategy at Van Eck, weighed in on the undertaking, stating, "This time, one of the riskiest players in the big tech world seems to be taking a step back."
Insight: The new Bitcoin-centric entity has renamed itself from "21 Capital" to Twenty One, a Bitcoin-native company, after its business combination with Cantor Equity Partners. (Enrichment Data)
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(Enrichment Data: The fund's ultimate goal is to acquire a significant portion of global Bitcoin treasury holdings.)
SoftBank, in collaboration with Tether and Bitfinex, invests $900 million and $600 million respectively into 21 Capital, the Bitcoin-focused fund created by Cantor Fitzgerald and others.Brandon Lutnick, chairman of Cantor Fitzgerald, leads the charge for 21 Capital, a special purpose acquisition company that aims to replicate the success of publicly-traded corporations that sponsor Bitcoin investments.In addition to these investments, 21 Capital intends to issue $350 million in convertible notes and raise $200 million in private equity to amass more Bitcoin, which will then be transformed into 21 Capital shares.Matthew Sigel, head of digital asset strategy at Van Eck, comments on this venture, stating, "This time, one of the riskiest players in the big tech world seems to be taking a step back."
