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Brandon Lutnick To Launch $3B Bitcoin Investment Firm 21 Capital

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Cantor Fitzgerald Chair Brandon Lutnick—the son of US Commerce Secretary Howard Lutnick—is launching a $3 billion Bitcoin investment firm called 21 Capital, backed by SoftBank, Tether, and Bitfinex, the Financial Times reported.

The special purpose acquisition company (SPAC), Cantor Equity Partners, raised $200 million at the start of the year. It will now help form 21 Capital with $3 billion in Bitcoin from the crypto giants.

The BTC contributions will be converted to equity at a price of $10 per share, implying $85K per Bitcoin, according to the report.

Howard Lutnick's Son

21 Capital Aims To Raise Over $500 Million To Buy More Bitcoin

The 21 Capital deal is similar to Strategy’s (formerly MicroStrategy) BTC proxy model. To date, Strategy has issued stocks and speculative debt to purchase Bitcoin. Data from BitcoinTreasuries.net shows that Strategy is currently the largest corporate BTC holder globally, with a stockpile of $534,741 BTC. 

Lutnick’s new venture aims to follow in Strategy’s footsteps, and wants to raise another $350 million in convertible bonds as well as $200 million in private equity placement to buy more Bitcoin.

Regulatory Changes Under Trump Administration Fuel Institutional Bitcoin Interest

While Lutnick’s SPAC deal has not been finalized yet, leaving room for change in the entity’s ownership and structure, the reported move comes amid increasing institutional interest in Bitcoin following regulatory changes under the Trump administration.

Pro-crypto and Trump-elected Paul Atkins was sworn in as the Securities and Exchange Commission’s (SEC) new chair earlier this week. This was after the regulator dropped multiple high-profile crypto cases. 

Atkins said yesterday after being sworn in that digital assets will be oneare a top priority.

In the last 24 hours, inflows for spot Bitcoin ETFs (exchange-traded funds) reached their highest levels since the middle of January, pushing the leading crypto’s price to above $94K for the first time in 7 weeks.

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