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Investing.com-- A venture led by Brandon Lutnick, chair of brokerage Cantor Fitzgerald, is partnering with SoftBank (TYO:9984), Tether, and Bitfinex to invest in cryptocurrencies, the Financial Times reported on Tuesday.
The partnership aims to invest billions of dollars in crypto in a method similar to Strategy, formerly MicroStrategy, which clocked an exponential growth in valuation after it began heavily investing in Bitcoin, the FT report said, citing people with knowledge of the matter.
The vehicle is also an attempt by Lutnick to capitalize on a crypto revival under President Donald Trump, who has vowed to dole out more crypto-friendly policy. Lutnick’s father is Howard Lutnick, who stepped down from Cantor to become Trump’s commerce secretary.
The proposed crypto project is a special purpose acquisition company and is seeking to create a publicly listed alternative to Strategy, by issuing stock and speculative debt to build a massive crypto stockpile. It was not immediately clear whether the SPAC will invest solely in Bitcoin, or will also diversify into other crypto assets.
The SPAC will receive $3 billion in Bitcoin from Tether, Softbank (OTC:SFTBY), and Bitfinex. The venture also plans to raise $350 million in bonds and $200 million in equity to buy more Bitcoin, the FT report said.