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.