Major financial and crypto firms have formed a group to invest heavily in Bitcoin. The group includes Cantor, Bitfinex, SoftBank, and Tether. It will invest a total of US$3 billion in a new firm called 21 Capital.
The group aims to mimic the success of Strategy’s (formerly known as MicroStrategy) Bitcoin investment strategy. It is headed by Cantor Equity Partners' Brandon Lutnick. SoftBank's huge portfolio and US$180 billion in assets immediately lend credibility to the proposed policy.
According to sources, 21 Capital will begin with a major investment in Bitcoin. The contribution split is:
Tether- US$1.5 Billion
SoftBank- US$900 Million
Bitfinex- US$600 Million
The consortium is also going to raise US$350 million through convertible bonds and a US$200 million private equity placement. The move is a big step for Lutnick, who was recently appointed as the chairman of Cantor Fitzgerald.
Strategy, a software firm, recently gained attention for its aggressive Bitcoin buying strategy. It resulted in the market capitalization growth to US$91 billion for the company. Its low-coupon debt and equity issuance to fund Bitcoin buys have clearly been successful. Thus, inspiring other companies to follow its path.
Bitcoin has jumped 12% over the last week. It is trading at US$93,450 on April 23, 2025. Falling US stock indexes and talks of a growing US Bitcoin Reserve drive the BTC bull run. Analysts project a surge to US$138,000 within the next three months.
Given optimistic BTC projections, the deal couldn't have come at a better time for the firms. However, it is still in its infancy and may encounter revisions along the way. However, it highlights the growing institutional interest in Bitcoin and digital assets.