Main Points:
- Cantor Fitzgerald allocates 39.23% of its equity holdings to Strategy (formerly MicroStrategy), signaling deep conviction in bitcoin exposure.
- Strategy remains the largest corporate holder of bitcoin, with 553,555 BTC valued at $37.90 billion as of April 28, 2025.
- The firm reported a robust 13.7% “BTC Yield” YTD and announced a $21 billion at‑the‑market equity offering to fund further bitcoin purchases.
- Cantor’s venture arm, Cantor Equity Partners, is launching “21 Capital” with partners SoftBank, Tether, and Bitfinex to create a $3 billion bitcoin investment vehicle.
- Corporate bitcoin adoption is accelerating: GameStop added bitcoin to its treasury, and over 70 public companies now follow a bitcoin treasury standard.
Strategic Allocation to Strategy (MSTR)
In a highly unusual move for an established securities firm, Cantor Fitzgerald disclosed in its Q4 2024 “Equity Holdings Map” that 39.23% of its publicly disclosed stock portfolio was invested in Strategy™ (NASDAQ: MSTR), the corporate arm of what was formerly known as MicroStrategy. This allocation far outpaces holdings in technology giants such as NVIDIA (NVDA), Tesla (TSLA), and AMD, underscoring Cantor’s conviction that Strategy provides the most direct proxy for bitcoin exposure without holding the cryptocurrency directly.
Such a concentration—in which nearly four out of every ten dollars invested are tied to one company—is nearly unheard of among global financial institutions. It represents a bold expression of belief in both Strategy’s corporate treasury strategy and the long‑term value proposition of bitcoin as an asset class.
Strategy’s First Quarter 2025 Performance
On May 1, 2025, Strategy announced its financial results for Q1 2025 (the period ending March 31), highlighting continued growth and operational execution under its “Bitcoin Treasury” model:
- 553,555 BTC on its balance sheet, with a total cost of $37.90 billion (average cost basis $68,459/bitcoin) as of April 28, 2025.
- 13.7% “BTC Yield” achieved year‑to‑date, representing over 90% of its 2025 yield target (15%).
- 61,497 BTC Gain YTD, equating to $5.8 billion in mark‑to‑market gains, or 58% of its $10 billion annual gain target.
- Announcement of a $21 billion at‑the‑market (ATM) equity offering to finance further bitcoin acquisitions.
- Fair value accounting adoption, resulting in a $12.7 billion uplift in beginning retained earnings.
Despite reporting a $4.22 billion net loss for Q1 (driven by unrealized markdowns under the new accounting rule), Strategy’s stock price has rallied 32% YTD, outperforming the Nasdaq 100 index’s nearly 6% decline, reflecting investor confidence in its bitcoin‑centric strategy.
Launching “21 Capital”: Cantor’s Bitcoin Venture
In April 2025, Cantor Fitzgerald’s venture arm, Cantor Equity Partners, revealed plans to establish 21 Capital, a specialized bitcoin investment vehicle capitalized with $3 billion from strategic partners including SoftBank, Tether, and Bitfinex. Under the structure reported by CryptoBriefing, the consortium will:
- Contribute $1.5 billion in bitcoin from Tether, $900 million from SoftBank, and $600 million from Bitfinex.
- Raise an additional $350 million via a convertible bond and $200 million in private equity placement.
- Price shares of 21 Capital at $10 each, valuing bitcoin at $85,000 per coin.
This initiative closely mirrors Strategy’s own model of leveraging equity markets to fund large‑scale bitcoin purchases and underscores Cantor’s ambition to cement its role in institutional digital asset investment.
Broader Trends in Corporate Bitcoin Adoption
Cantor Fitzgerald’s concentrated allocation and new venture activity are emblematic of a broader institutional shift:
- GameStop (GME) adopted bitcoin as a treasury reserve asset in March 2025, joining Strategy in diversifying corporate treasuries into digital assets.
- Over 70 public companies worldwide have now embraced a bitcoin treasury standard, from small‑cap innovators to large financial institutions, signaling mainstream acceptance of crypto‑treasury strategies.
- “Bitcoin for Corporations” Conference scheduled for May 6–7, 2025, in Orlando, featuring keynote addresses by Michael Saylor and Phong Le, highlights the proliferation of corporate‑level discussion and best practices for integrating bitcoin into business operations.
These developments suggest that non‑financial corporates are increasingly viewing bitcoin not just as a speculative asset but as a strategic treasury reserve capable of enhancing shareholder value, diversifying risk, and leveraging the digital scarcity narrative of bitcoin.
Analysis: Risks and Opportunities
Opportunities:
- Enhanced Yield Potential: Strategy’s “BTC Yield” KPI framework offers a novel metric for quantifying treasury performance beyond traditional interest or dividend strategies.
- Market Leadership: Cantor’s initiative positions it at the forefront of institutional digital asset services, likely attracting capital from risk‑tolerant allocators seeking alternative returns.
- Network Effects: Partnerships with major players like Tether and SoftBank enhance credibility and operational scale, facilitating further institutional adoption.
Risks:
- Regulatory Uncertainty: Evolving securities and banking regulations around digital assets could impact both the ability to hold bitcoin and the attractiveness of equity‑funded acquisition strategies.
- Concentration Risk: Cantor’s 40% allocation to a single equity (Strategy) exposes its portfolio to company‑specific risks—such as management changes, accounting impacts, or share dilution from equity offerings.
- Volatility: Bitcoin price fluctuations materially affect balance sheet valuations under fair value accounting, leading to significant quarterly earnings volatility.
Conclusion
Cantor Fitzgerald’s decision to concentrate nearly 40% of its equity portfolio in Strategy (MSTR) and to launch a $3 billion bitcoin venture through 21 Capital represents a watershed moment in institutional digital asset investment. Backed by robust Q1 performance metrics and innovative capital‑markets strategies, these moves underscore bitcoin’s maturation as a treasury asset and herald a new phase of corporate adoption. However, investors should balance the potential for outsized returns against the inherent volatility and regulatory headwinds that accompany large‑scale cryptocurrency exposure. As more corporations like GameStop and over 70 others embrace bitcoin treasury models, Cantor’s bold bet may well catalyze broader acceptance—or cautionary tales—depending on how market and regulatory dynamics unfold in the coming quarters.
