A joint venture led by Mr. Brandon Lutnick, chairman of brokerage at Cantor Fitzgerald, is collaborating with SoftBank (TYO:9984), Tether, and Bitfinex to invest in cryptocurrency, according to a report by the Financial Times on Tuesday.
This collaboration aims to invest billions of dollars in cryptocurrency using a method similar to Strategy, formerly known as MicroStrategy, a company that has seen exponential value growth after heavily investing in Bitcoin, according to the FT report, citing knowledgeable sources.
This vehicle is also Mr. Lutnick's effort to capitalize on the resurgence of cryptocurrency under President Donald Trump, who has committed to a friendlier policy towards cryptocurrency. Mr. Lutnick's father is Howard Lutnick, who resigned from Cantor to become Mr. Trump's Secretary of Commerce.
The proposed cryptocurrency project is a special purpose acquisition company (SPAC) and is seeking to create a publicly listed alternative to Strategy by issuing speculative equity and debt to build a massive cryptocurrency reserve. It is currently unclear whether this SPAC will only invest in Bitcoin or diversify into other cryptocurrency assets.
This SPAC will receive $3 billion in Bitcoin from Tether, Softbank (OTC:SFTBY), and Bitfinex. The joint venture also plans to raise $350 million in bonds and $200 million in equity to purchase additional Bitcoin, according to the FT report.
