Investment Tycoon Masayoshi Son Bets Big on Crypto after Heavy AI Investments
Masayoshi Son, the “investment tycoon,” is set to make a significant bet in the cryptocurrency sector after heavily investing in AI. Similar to his AI initiatives, the SoftBank Group, which he leads, is likely to collaborate with Cantor Fitzgerald, a traditional financial services firm closely tied to U.S. authorities, to establish a joint venture in the cryptocurrency space, with a total scale of up to $3 billion in partnership with Tether, the largest stablecoin issuer.
This joint venture is viewed as a variant replay of the “Bitcoin Financial Strategy” led by Michael Saylor’s Strategy company. Following the resignation of U.S. Secretary of Commerce Howard Lutnick as Cantor Chairman and CEO, his son Brandon Lutnick now leads the company.
Tether Contributes $1.5 Billion in Bitcoin, Ushering in “Bitcoin Financial Strategy” 2.0 Era
The joint venture will appear in the form of a Special Purpose Acquisition Company (SPAC) named Cantor Equity Partners. Earlier this year, the SPAC raised $200 million in initial funding, planning to establish a new company, “21 Capital,” to absorb and manage billions of dollars in Bitcoin assets. Partners in this collaboration will convert into shares of 21 Capital, valuing each Bitcoin at $85,000, with a share price of $10.
According to reports, Tether will provide $1.5 billion worth of Bitcoin as capital, while its affiliated exchange Bitfinex and SoftBank Group will contribute $600 million and $900 million in Bitcoin, respectively. This deal is expected to be officially announced in the coming weeks, although there remains a possibility of it falling through.
This SPAC is perceived by the market as a replay of Strategy’s “Bitcoin Financial Strategy.” Originally a corporate software provider, Strategy has transformed into a core proponent of “digital gold” through continuous acquisition of Bitcoin assets. As of April 23 at noon, it held 538,200 Bitcoins, with a market value exceeding $50.1 billion. Its aggressive financial strategy has inspired numerous imitators globally, such as Japan’s Metaplanet Inc. Their purchases are typically funded through stock issuance and other financial instruments, including convertible notes.
Now, Cantor, Tether, and SoftBank are attempting to extend similar ideas to a more structured investment tool level, possibly through a new acquisition platform, to attract more funds into the Bitcoin market.
Meanwhile, in recent years, Tether, as the issuer of the world’s largest stablecoin USDT, has actively promoted a diversified investment strategy. Over the past year, the company has frequently invested in various sectors, including agriculture, AI, and even brain-computer interfaces.
Deepening Tether and Cantor’s Political and Business Ties?
The relationship between Tether and Cantor is becoming increasingly close. Cantor not only holds convertible bonds issued by Tether but also assists in managing Tether’s U.S. Treasury reserve of over $80 billion, which provides a value anchor for the USDT stablecoin, valued at up to $142 billion. This asset management arrangement brings tens of millions of dollars in annual revenue to Cantor. In 2023, Cantor acquired a 5% stake in Tether through convertible debt investments, valued at approximately $600 million.
Howard Lutnick, the former CEO of Cantor Fitzgerald, was appointed Secretary of Commerce in the Trump administration in February 2025, officially stepping down from the company to enter politics. This personnel change reflects the power transfer within the Cantor family.
Howard Lutnick led Cantor Fitzgerald for over 30 years, rebuilding the company after losing 658 employees in the September 11 terrorist attacks. After becoming Secretary of Commerce, he must divest his business interests according to U.S. government ethics rules, but his influence continues through strategic and familial mechanisms. The new appointment structure indicates Lutnick’s intention to maintain his vision through trusted insiders and family members.
His son, 26-year-old Brandon Lutnick, has been appointed Chairman of Cantor and is a key driver of this SPAC project. He facilitated the engagement between Tether and the video platform Rumble Inc. before Tether’s $775 million investment. According to reports from the Financial Times, the newly formed SPAC is Brandon’s initiative to position Cantor at the core of the cryptocurrency investment boom.
Another son, Kyle Lutnick, was appointed Executive Vice President of Cantor Fitzgerald, L.P. Although Lutnick divested his holdings in Cantor, BGC Group, and Newmark Group due to U.S. government ethics requirements, critics question whether this truly severed his influence. Democratic Senator Elizabeth Warren has openly pointed out the deep entanglement and support between Lutnick and Tether, raising concerns about his judgment and whether he can prioritize the interests of the American people over personal financial gain.
Cantor’s Another Major Move: SoftBank’s Bitcoin Retry
Backtracking to July 2024, at the Bitcoin 2024 conference in Nashville, Howard Lutnick publicly announced that Cantor Fitzgerald would launch a Bitcoin-collateralized lending business with funding up to $2 billion. He reminisced about the impact of the “9/11” events on himself and the company, expressing firm support for Bitcoin and the crypto community.
At the end of his speech, Lutnick added, “The moral of this story is—we will welcome Bitcoin into the global financial market financing system, and Cantor Fitzgerald will be your supporter.”
This signal was interpreted by the market as a further push from traditional financial firms to invest in Bitcoin. Last November, according to Bloomberg citing insiders, Cantor Fitzgerald was in discussions with Tether regarding its proposed billion-dollar loan program, which aims to provide dollar loans to clients collateralized by Bitcoin.
Meanwhile, SoftBank, another key player in this collaboration, had previously purchased $200 million worth of Bitcoin in 2017, initiated by group chairman Masayoshi Son, resulting in a loss of over $130 million due to buying high and selling low.
However, in recent years, SoftBank has re-committed to the digital infrastructure sector. Earlier this year, SoftBank invested $50 million in Cipher Mining, acquiring approximately 10.4 million shares (3%) to support the development of HPC data centers and engaged in exclusive negotiations for a month regarding data center space, although those negotiations never materialized.
Overall, this collaboration plan involving Cantor, Tether, and SoftBank is seen as another significant bet by SoftBank in the Bitcoin market, utilizing a structured framework to mitigate risks. The three collaborating entities’ crypto joint venture is not only massive in scale but also deeply integrates stablecoins, Bitcoin assets, policy power, and institutional custody in strategic pathways.
More importantly, in the context of the Trump administration’s push for a “Bitcoin Strategic Reserve” and the construction of a more lenient regulatory environment for cryptocurrencies, Cantor, Tether, and SoftBank may synchronize with macro policies, paving the way for traditional finance to fully embrace cryptocurrencies.
This article is collaboratively reprinted from: PANews