By Abhijeet
Key Points
- $3B Bitcoin Investment Fund Backed by SoftBank and Tether Shakes Up Crypto
- 21 Capital backed with $3 billion in Bitcoin investments
- US Commerce Secretary’s son Brandon Lutnick at the helm
- Tether, SoftBank, Bitfinex among core contributors
- Project mirrors MicroStrategy’s Bitcoin strategy
In a bold new move reminiscent of MicroStrategy’s legendary Bitcoin accumulation, Brandon Lutnick—son of U.S. Commerce Secretary Howard Lutnick—is leading a $3 billion initiative backed by some of the biggest players in crypto and finance.
The venture, dubbed 21 Capital, is being launched via Lutnick’s Cantor Equity Partner SPAC, which raised $200 million earlier this year. The goal? Create a Bitcoin-focused investment powerhouse that could reshape how institutions hold digital assets.
🚨 SoftBank to Join Tether, Bitfinex, and Cantor to launch 21 Capital, seeded with $3B in Bitcoin and set to go public via SPAC: FT
SoftBank will contribute $900M to buy BTC @ $85k, with Tether in for $1.5B and Bitfinex $600M.
Masayoshi Son’s biggest Bitcoin bet yet.
In 2017,… https://t.co/elfubTlzDv pic.twitter.com/0haGAoqDke
— matthew sigel, recovering CFA (@matthew_sigel) April 23, 2025
Partnering with Lutnick are heavyweights like SoftBank, Tether, and Bitfinex, each pledging significant contributions in BTC:
These BTC contributions will be exchanged for shares in 21 Capital, priced at $10 each, with Bitcoin locked at a valuation of $85,000 per coin.
Additional capital will come via a $350 million convertible bond and a $200 million private equity raise, aimed at acquiring even more Bitcoin. While final details could still shift, this bold play marks one of the largest collaborative Bitcoin investments to date.
With Bitcoin recently jumping over 5% in a day to trade at $92,862, the timing couldn’t be better. It also follows a broader narrative of growing institutional support for BTC, seen earlier when MetaPlanet boosted its Bitcoin holdings.
BTC Price Performance. Source: Techtoken
Strategy 2.0 or Market Overload?
Crypto insiders were quick to label this move “Strategy 2.0”—a nod to MicroStrategy’s aggressive Bitcoin strategy. That firm has become the largest corporate BTC holder, with 538,200 coins worth more than $50 billion at press time.
SoftBank’s increasing exposure to crypto has also raised eyebrows. “Masayoshi Son’s biggest Bitcoin bet yet,” VanEck’s Matthew Sigel commented on X. As seen in past events like the Trump-Powell Bitcoin vs. Dollar clash, big institutional moves often precede major market shifts.
Still, skepticism remains. One analyst wrote:
you start to think that bitcoin is rallying as a sound money store of value inflation hedge but the market gods have a sick sense of humor and it turns out it was just a cantor/softbank/tether MSTR 2.0 all along
— juthica (@juthica) April 23, 2025
Unlike MicroStrategy’s solo BTC buys, 21 Capital represents a pooled, multi-party fund—bringing together stablecoin issuers, investment giants, and crypto exchanges in a single vehicle.
This structure could amplify both upside and risk, especially in the face of regulatory scrutiny. With Lutnick’s high-profile family ties and Wall Street pedigree, 21 Capital may draw extra attention from U.S. regulators, including those led by figures like Paul Atkins, a potential future SEC Chair known for pro-crypto leanings.
Regulatory Watch and Community Reactions
The crypto world is no stranger to big announcements followed by mixed reactions. While some hail the 21 Capital move as a validation of Bitcoin’s place in institutional finance, others fear it may signal a top-heavy approach similar to failed speculative waves.
A common criticism is that such massive ventures may create hype without true innovation—similar to how Zora’s content coins faced backlash from watchdogs like ZachXBT for lacking utility.
On the regulatory front, the push to legitimize Bitcoin continues. Coinbase recently gained CFTC approval to launch XRP futures, further suggesting a trend toward broader market maturity and oversight.
As 21 Capital prepares for launch, its success will depend not just on Bitcoin’s long-term price movement but also on its ability to navigate evolving regulations and gain trust in a fast-moving market. If BTC sustains its rally past $90K and maintains momentum, the fund could ride a strong wave of institutional FOMO.
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