A $3 billion Bitcoin investment collaboration, backed by deep connections between old investment banks, crypto giants, and political resources.
On April 24, 2025, the established investment bank Cantor Fitzgerald will launch a Bitcoin investment plan worth up to $3 billion in collaboration with Tether, Bitfinex, and SoftBank, planning to establish a company focused on directly holding Bitcoin—21 Capital.
This plan is led by Brandon Lutnick, son of U.S. Secretary of Commerce Howard Lutnick and current chairman of Cantor, and is seen as a new version of MicroStrategy, creating a Bitcoin investment project referred to as 'MicroStrategy 2.0' by the outside world.
MicroStrategy, as a benchmark company for Bitcoin investment, will its successful model be replicated? What are the motivations, potential impacts, and risks of this combination? Below, I will conduct a deep analysis from various dimensions such as background, strategic motivations, market impact, and risk factors.
The identity of the leader is special, and the background strength of the core player is formidable.
The leader: Brandon Lutnick
Brandon Lutnick's father, Howard Lutnick, is the current U.S. Secretary of Commerce, and he himself is currently the chairman of Cantor Fitzgerald, as well as the head of several SPACs.
He graduated from Stanford University and has worked in Oak Hill Advisors and the stock trading department of Cantor, being regarded as having a strong financial operational background.
Brandon may act as the operator, utilizing family background and Cantor resources to coordinate all parties in building this project.
Wall Street financial giant: Cantor Fitzgerald
Background introduction: Cantor Fitzgerald is an American investment bank established in 1945, known for bond trading and alternative investments, managing over $50 billion in assets.
Crypto layout: Cantor has been involved in the crypto market since 2018 and is one of the earliest traditional institutions to provide Bitcoin-related financial services. In 2024, Cantor launched Bitcoin financing services, offering leveraged trading to institutional clients.
Motivation: Cantor may hope to further expand its market share in the crypto field through the 'MicroStrategy 2.0' project, profiting from the Bitcoin bull cycle.
Global technology investment giant: SoftBank
Background introduction: SoftBank is a Japanese technology investment giant, managing a vision fund exceeding $100 billion, with a portfolio that includes Uber, ByteDance, and is best known for Masayoshi Son's investment in Alibaba.
Crypto attitude: SoftBank is cautious about cryptocurrencies, but its founder Masayoshi Son has publicly expressed optimism about blockchain technology. In 2023, SoftBank participated in the financing of several Web3 startups through its subsidiaries.
Motivation: SoftBank may see 'MicroStrategy 2.0' as part of a diversified investment strategy, seeking excess returns through the high volatility of Bitcoin.
Stablecoin leader: Tether
Background introduction: Tether is the world's largest stablecoin issuer, with a market value exceeding $120 billion, accounting for over 70% of the stablecoin market share.
Bitcoin holdings: Tether publicly disclosed holding approximately 80,000 Bitcoins, making it an important player in the market.
Market motivation: Tether may enhance the value of its Bitcoin reserves by participating in projects, while also consolidating its dominant position in the crypto ecosystem.
Clear capital structure, 'MicroStrategy model 2.0'
The successful model of MicroStrategy: MicroStrategy has been financing Bitcoin purchases through bond and stock issuance since 2020, holding about 250,000 Bitcoins as of April 2025, accounting for 1.2% of the total supply, with an unrealized profit exceeding $15 billion.
Capital structure: 21 Capital will be funded by three parties for a total of $3 billion in Bitcoin: Tether will contribute $1.5 billion, SoftBank $900 million, and Bitfinex $600 million. Notably, Tether and Bitfinex belong to the same parent company and share a cross-managed team.
In addition to funding digital currencies, 21 Capital also plans to issue $350 million in convertible bonds and $200 million in private equity to continue expanding its Bitcoin holdings. This strategy is similar to MicroStrategy: first raise funds through capital markets, then concentrate on purchasing Bitcoin, using BTC as the core asset to support valuation.
Here, you can refer to last year's research and analysis report on MicroStrategy: Did MicroStrategy use $42 billion of off-exchange leverage to buy BTC, which could become a target for Wall Street capital?
The goal of 21 Capital is to become a 'publicly listed Bitcoin investment platform,' allowing traditional investors to indirectly hold BTC through stocks. This structure has gradually gained popularity worldwide in recent years, with companies like Japan's Metaplanet adopting similar layouts.
The motives of the partners are complex; can they push BTC to $250,000 each?
The motivations behind 21 Capital may go beyond simple 'speculation'. Perhaps there are more financial landscapes.
Cantor: Enhancing its reputation in the crypto finance field through projects, attracting more institutional clients, while profiting from Bitcoin's rise.
SoftBank: In the context of returns on technology investments, continue to seek new asset targets with high risk and high returns.
Tether: By increasing its BTC holdings, it enhances its reserve assets and continues to solidify its voice in the crypto market.
Brandon Lutnick: Leveraging 21 Capital to enhance the influence of personal and asset management businesses, creating new revenue growth points for the family business, and seeking to share in the crypto market.
The biggest advantage of collaboration: This is a combination of traditional capital and new technology, merging the capital strength of Cantor and SoftBank with Tether's crypto ecosystem, forming a closed loop of funds, technology, and market.
21 Capital may become a strong signal of a Bitcoin bull market, attracting more retail and institutional participants, with Howard Lutnick becoming Secretary of Commerce potentially seeking a more lenient regulatory environment for the project.
Masayoshi Son once bought Bitcoin at a high point in 2017, ultimately losing over $130 million before exiting, and has not been involved since then. However, this time he chose to partner with Cantor and Tether, leading to speculation that this may be aimed at leveraging a larger digital finance layout.
The combination of Tether and SoftBank may constitute a 'USD liquidity arbitrage structure': Tether issues USDT, SoftBank invests in high-volatility assets through low-interest financing, driving the circulation of USDT issuance and demand. Although still hypothetical, there is operational space structurally.
At the same time, the long-term relationship between Cantor and Tether, combined with the involvement of the Secretary of Commerce's family, has led many investors to speculate that this operation may have already 'received signals'. One market observer even commented: 'First MicroStrategy, now Cantor, Tether, and SoftBank, is the next one the national team?'
Market impact and future outlook for cryptocurrencies
First: Price push, the launch of the 21 Capital project may trigger a short-term surge in Bitcoin prices. Assuming the SPV purchases 100,000 Bitcoins (approximately 0.5% of circulation), based on the current price ($95,000), about $9.5 billion would need to be invested, sufficient to trigger market FOMO.
Second: Institutional effect, the participation of Cantor and SoftBank may drive other traditional institutions to enter, accelerating the mainstreaming of Bitcoin. At the same time, the MicroStrategy model has been validated by the market, and the '2.0 version' may further raise the fear and greed index, attracting retail funds.
Third: Long-term impact, Tether's participation may further strengthen the linkage between stablecoins and Bitcoin, driving the development of Layer 2 and other ecological projects. 'MicroStrategy 2.0' may be larger in scale, further driving up the price of BTC, making the earlier predictions of this bull market by Boston Consulting, BlackRock Asset Management, etc., of BTC prices breaking $250,000 very likely to become a reality.
Summary: The collaboration between Cantor, SoftBank, and Tether to create 'MicroStrategy 2.0' is likely to become a new engine for the Bitcoin bull market, with 21 Capital, led by Brandon Lutnick, potentially becoming an important driving force in the Bitcoin market in 2025.
Finally: Many views in this article represent my personal understanding of the market and do not constitute investment advice for you.
