Cantor Fitzgerald is hurtling toward the launch of a $3 billion Bitcoin acquisition vehicle, garnering support from industry heavyweights. While the launch hangs in the balance, experts like Syncracy Capital co-founder Ryan Watkins are describing it as a MicroStrategy clone.
Cantor To Launch $3 Billion Bitcoin Venture
According to a Financial Times report, Cantor Fitzgerald is pooling resources to float a Bitcoin SPAC in the near future. The move has garnered the backing of industry heavyweights like SoftBank, Bitfinex, and Tether.
Per the report, Tether has pledged to seed the bitcoin acquisition vehicle with $1.5 billion worth of Bitcoin. Japanese investment giant SoftBank is putting skin in the game with a $900 million capital injection, while Bitfinex will contribute $600 million.
SoftBank’s decision to wade into Bitcoin investment follows its Tokyo-based Metaplanet’s steady BTC acquisition spree.
The trio will prop Cantor with $3 billion to pursue its Bitcoin acquisition ambitions. The venture will be steered via Cantor Equities Partners, which will create a new corporate entity dubbed 21 Capital.
Per the report, Brandon Lutnick, son of US Commerce Secretary Howard Lutnick will lead 21 Capital. Howard Lutnick is the Chairman of Cantor Fitzgerald, a brokerage with significant interest in Bitcoin and cryptocurrencies.
Previously, Cantor Fitzgerald has rolled out a $2 billion Bitcoin financing business, tapping Anchorage as custodial partner. Cantor also manages Tether’s reserves with the stablecoin issuer indicating an interest to invest in the BTC financing business.
Is The Move Mirroring MicroStrategy?
Syncracy Capital co-founder Ryan Watkins has described Cantor’s new venture as an attempt to mirror MicroStrategy’s Bitcoin accumulation blueprint. He warns that the move to accumulate Bitcoin may trigger bubble behaviour that may trigger unwindings in the future. MicroStrategy latest acquisition of 6556 BTC follows a lengthy streak of similar purchases by the publicly traded company.
“So another MicroStrategy clone, by Cantor, SoftBank, and Tether, with $550M of dry powder to start,” said Watkins. “One is an outlier, two is a trend. Dozens starts to look like bubble behaviour.”
However, crypto lawyer John Deaton argues that the move is in line with US President Trump’s decision to launch a Strategic Bitcoin Reserve. Trump’s executive order mandates Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent to acquire Bitcoin in budget-neutral ways.
Bitcoin price reacted positively to the report, climbing to a two-week high of $93,000. Despite the glowing price, there are fears that the BTC rally might be fake with the spectre of a drop to $80K lurking in the shadows.
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