Cantor Chair Floats Bitcoin SPAC Firm with Support from Tether and SoftBank

Key Takeaway:

• Cantor chairman launches $3B Bitcoin SPAC with Tether and SoftBank backing
• 21 Capital will raise $550M more to expand Bitcoin holdings
• Lutnick's political influence boosts crypto-friendly regulatory environment

Brandon Lutnick, Chairman of Cantor Fitzgerald, is launching a new Bitcoin company called 21 Capital. Three major investors are backing it with $3 billion worth of Bitcoin. Tether is contributing $1.5 billion, while SoftBank and Bitfinex are investing $900M and $600M, respectively.

SPAC Merger Mirrors Strategy with Aggressive BTC Acquisition Plan

Lutnick is spearheading the initiative, but it will operate under the Corporate backing of his company (Cantor, which holds a 5% stake in Tether). 

21 Capital will use Cantor Fitzgerald's SPAC (Cantor Equities Partners) to go public. 21 Capital shares are expected to list at $10 each, while the contributed Bitcoin will be valued at $85,00 per coin.

Besides the $3B in Bitcoin pledge, 21 Capital plans to grow bigger. The company will raise additional capital to fund its acquisition. It plans to raise $350 million through convertible bonds and a fresh $200 million via private equity placement.

Cantor, Tether, SoftBank, and Bitfinex are backing a new firm, 21 Capital, with $3B in #bitcoin.

The deal values BTC at $85,000 and converts shares at $10. pic.twitter.com/Q8Tk8zEHIV

— TFTC (@TFTC21) April 23, 2025

This partnership aims to maximize the revival of cryptocurrency under U.S. President Donald Trump as the crypto market gains new momentum. 

The strategy mirrors Michael Saylor’s approach, where Strategy transformed into a Bitcoin powerhouse by acquiring nearly $45 billion in BTC through equity, offerings, convertible debt, and a consistent acquisition strategy. 

Similar institutional plays have emerged globally, such as Japan's Metaplanet and Nexon and Hong Kong's Meitu.

These moves highlight the growing demand for Bitcoin exposure via public-market vehicles, particularly as regulatory conditions improve.

Private Investments Reshape Crypto’s Role in Corporate Finance

The 21 Capital SPAC deal strengthens Cantor Fitzgerald's existing financial relationship with Tether, the world's largest stablecoin issuer. 

For years, Cantor has handled most of Tether's U.S. Treasury holdings. This cooperation continues even after Howard Lutnick, Cantor's former chairman and father to the current chair, tempered his earlier enthusiasm about Tether's dollar reserves during Senate hearings.

Over the past year, Tether, the world’s largest stablecoin issuer, has been ramping up its private investments. 

As of December 2024, the company reported holding over $7 billion in Bitcoin reserves. While Howard Lutnick now serves as U.S. Commerce Secretary rather than leading Cantor, his influence at the broker persists. 

📢 NEW: Tether doubles down on #Bitcoin, acquiring 7,629 BTC worth $705M. Its reserve now stands at $7.7B in Bitcoin! pic.twitter.com/g18DG421hI

— Swan (@Swan) December 30, 2024

As a vocal advocate for cryptocurrency-friendly policies in the Trump administration, his push for deregulation has helped create favorable conditions for deals like the 21 Capital merger.  Many expect his government role to smooth regulatory paths for future crypto ventures. 

The 21 Capital deal represents just the latest manifestation of this evolving relationship – one where traditional financial players like Cantor Fitzgerald serve as bridges between the crypto world and mainstream capital markets. 

The timing proves particularly auspicious as the Trump administration's pro-crypto stance converges with growing institutional demand for Bitcoin exposure. With Cantor's deep Tether connections and Lutnick's Washington clout, 21 Capital stands ready to ride this perfect storm.