Brandon Lutnick and Heavyweights Join Forces for $3 Billion Bitcoin SPAC: A Game Changer in Crypto Investment

Brandon Lutnick's Bold Move in the Bitcoin Space

Brandon Lutnick, son of U.S. Commerce Secretary Howard Lutnick and chair of Cantor Fitzgerald, is making headlines with the launch of a listed bitcoin investment vehicle. This initiative is backed by major players such as SoftBank, Tether, and Bitfinex, as reported by the Financial Times.

The SPAC and Its Ambitious Goal

The special purpose acquisition company (SPAC), named Cantor Equity Partners, successfully raised $200 million in January. The funds will help establish a new firm, 21 Capital, which aims to be seeded with $3 billion in bitcoin (BTC) from these prominent crypto investors. This strategy mirrors MicroStrategy’s bitcoin proxy model, intending to convert BTC into equity at a valuation of $85,000 per coin.

Tether's Involvement and Market Influence

Tether and Bitfinex are contributing significantly, with $1.5 billion and $600 million, respectively, while SoftBank is adding $900 million. The venture also plans to raise an additional $550 million through bonds and private equity to acquire more BTC.

The Timing and Market Context

This SPAC launch comes amid a resurgence of crypto optimism under the Trump administration, with bitcoin prices hovering near $92,000. The regulatory landscape appears to be shifting favorably, setting the stage for potential announcements in the coming weeks, although details may still evolve.

Howard Lutnick, during a recent Senate hearing, softened his previous stance regarding Tether's liquidity, indicating a more supportive view of the stablecoin issuer's stability. Notably, Cantor Fitzgerald also serves as one of Tether's custodians, holding a substantial amount of its U.S. Treasuries.

With these developments, the crypto landscape is poised for further evolution as institutional interest continues to grow, driven by figures like Brandon Lutnick and his powerful partners.