Cantor cooperates with Tether, SoftBank for $ 3.6 billion

Written by Arasu Kanagi Basil and Tommy Regeyry Wilkes

(Reuters) -Cantor Fitzgerland launches an encryption project with the Softbank Investor Group in the field of Japanese technology to buy Bitcoin, betting that interest in digital currency will expand under US President Donald Trump.

The deal, which was announced on Wednesday, contains the empty empty Cantor Cantor partners into the merger of the twenty -one capital.

The value of the shared car is $ 3.6 billion, based on the price of Bitcoin, which is about $ 85,000, and is launched twenty -one years with more than 42,000 Bitcoin, which will make it the third largest wardrobe in Bitcoin in the world.

The project deepens the relations between the mediation of Wall Street – headed by Brandon Lootnick, the son of the former president of Canor and the current US Trade Minister – and Tether, the company behind the largest Stablecoin in the world.

“We are not here to overcome the market, and we are here to build a public stock, which was built by Bitcoiners,” said Jack Malars, a co-founder and CEO of TON-One.

The new company will seek to repeat the success of the Michael Saylor Bitcoin Acquirer strategy, which increased its market value late last year as encryption prices jumped after Trump’s presidential victory. Trump promised to support the encryption industry by reducing regulations for digital assets.

The strategy, the largest company holder in Bitcoin, occupied 538,200 units of the largest encrypted currency in the world as of April 20, and has a maximum market for about $ 91 billion.

Tether will contribute to $ 1.6 billion in Bitcoin to the project, while BitFinex, a Tether encrypted exchange exchange, will make Softbank $ 600 million and 900 million dollars, respectively, according to the submission of the investor.

Companies will raise $ 585 million in additional capital through a group of convertible bonds and stock financing.

Some analysts promoted bitcoin, which is currently trading at $ 93,780, as a hedge against global economic risks. It has gained more than 40 % in the past six months, but has declined this month alongside stock markets and other asset prices when Trump ignited a global trade war.

Matt Mina, an expert on encryption in 21shares, said that the total and global conditions highlighted the need for a “digital store from the next generation of value”, and claimed that Bitcoin was entering into this role.

However, gold was among the largest beneficiaries on a journey to safety during the trade war, with the price of precious metals to rise in the high price of bitcoin this year.

Cord links

Twenty -one will be the majority owned by Tether and Cryptocurrency Exchang Bitfinex. Softbank will ownership of the minority.

Tether and Cantor have long -term relationships when Howard Lutnick was the head of mediation.

Cantor carries a lot of reserves denominated in dollars that Tether says contains every symbol that creates it for Stablecoin.

Paulo Erdino, CEO of Tether Tether Bills, said, 99 % with Cantor.

Twenty -one will be traded on the Nasdak Stock Exchange under the “twenty -sixth” symbol after the deal is closed.

(Participated in the reports of AraSu Kannagi Basil and Niket NISHANT in Bangaluru, Tommy Regeyry Wilkes in London; edited by Shrea Biswas, Shelby Magmdar and David Gregorio)