Adam Back's bitcoin treasury firm scraps SPAC merger, seeks new deal
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Adam Back’s Bitcoin Standard Treasury Company (BSTR), which is backed by the Blockstream CEO and bitcoin pioneer, has abandoned its original plans to go public via a merger with Cantor Equity Partners I (CEPO). The initial business combination agreement, set for July 2025, has been scrapped as the parties renegotiate the terms to better align with current market conditions. This move comes after a series of delays, including multiple postponements of CEPO’s shareholder meeting, which was indefinitely postponed following the latest announcement.
The original deal involved a SPAC merger that would have made BSTR one of the largest publicly traded corporate holders of bitcoin, with a balance sheet expected to include over 30,000 bitcoin. There was also a plan to raise up to $1.5 billion through a private investment in public equity (PIPE) to fund further bitcoin acquisitions. However, with the revised negotiations, the PIPE financing is no longer a requirement to close the transaction, signaling a major shift in the capital-raising approach.
CEPO shares are still trading at around $10.50, and any shareholder redemption requests linked to the original merger plans have been canceled automatically, requiring no action from investors. The ongoing renegotiations could lead to a new structure and timeline, which will be detailed in future filings with the U.S. Securities and Exchange Commission. Back had previously indicated that entering the market during a weaker bitcoin cycle might benefit BSTR by enabling it to accumulate bitcoin at lower prices ahead of potential market recovery.
The outcome of these discussions will likely impact BSTR’s trajectory as a bitcoin treasury company, as well as investor sentiment regarding corporate bitcoin holdings and SPAC mergers in fluctuating market environments. The indefinite delay and removal of PIPE financing requirements imply a cautious approach, reflecting broader uncertainty in crypto and public markets. Further details are awaited in regulatory filings that will clarify the path forward for BSTR and its public listing ambitions.