Adam Back's Bitcoin treasury company, Bitcoin Standard Treasury Company (BSTR), is set to go public with 30,021 BTC on its balance sheet, valued at over $3.5 billion at current prices. This is being facilitated through a merger with Cantor Equity Partners I (CEPO), a special-purpose acquisition company (SPAC) affiliated with Cantor Fitzgerald.

Adam Back BTSR
The deal has been confirmed in an official statement and was first reported by the Financial Times earlier this week.

Key Details of the Deal:

  • Bitcoin Holdings: BSTR will debut with over 30,021 BTC, contributed primarily by founding shareholders including Adam Back, who will serve as CEO of the new entity. This makes BSTR the fourth-largest publicly traded Bitcoin treasury firm, trailing only Marathon Digital Holdings (MARA) and Michael Saylor’s Strategy.
  • PIPE Financing: In addition to the Bitcoin holdings, BSTR is raising up to $1.5 billion in private investment in public equity (PIPE) financing. This includes:
    • $400 million in common equity
    • Up to $750 million in convertible notes
    • $350 million in convertible preferred stock This financing will be used to acquire additional Bitcoin and develop Bitcoin-native capital markets products and advisory services.
  • Leadership: Adam Back, a well-known figure in the Bitcoin community and co-founder of Blockstream, will serve as CEO of BSTR. Sean Bill will be the Chief Investment Officer.
  • Deal Structure: The transaction involves a business combination between BSTR and CEPO. Upon completion, the merged entity will be named Bitcoin Standard Treasury Company (BSTR). This structure allows Cantor Fitzgerald to list a Bitcoin-focused investment vehicle on a U.S. exchange without directly selling the asset.
  • Strategic Implications: This deal represents a significant milestone in institutional Bitcoin adoption. Unlike traditional SPAC transactions that target operating companies, this structure centers on acquiring a substantial Bitcoin reserve as a core treasury asset. It mirrors the Bitcoin-forward strategy pioneered by Strategy but with the distinction of being a public investment vehicle whose primary asset is Bitcoin.
  • Market Positioning: With its initial Bitcoin holdings and additional financing, BSTR could potentially move into the number three spot among public Bitcoin holders, behind only Strategy and MARA Holdings, depending on how much additional BTC is acquired with the $1.5 billion in PIPE financing.
  • Timing and Context: The announcement comes during “crypto week” in Washington, D.C., where key industry and regulatory stakeholders are meeting. This timing suggests a strategic alignment with broader efforts to promote regulatory clarity for digital assets in the U.S..
This marks a pivotal moment in the evolution of institutional Bitcoin investment and signals a broader shift in how traditional financial institutions are embracing digital assets as part of their treasury strategies.