Cantor-Backed SPAC and Bitcoin Firm BSTR Scrap Merger, Seek New Terms

A special purpose acquisition company (SPAC) backed by Cantor Fitzgerald and Adam Back’s Bitcoin-focused investment firm have scrapped their original merger agreement. The two parties announced Wednesday they will attempt to negotiate a new deal with revised terms better suited to the current economic environment.

Original Agreement Terminated

Cantor Equity Partners I Inc. and BSTR Holdings stated they will not proceed with the merger agreement signed last year. In connection with the termination, the companies have also canceled the private financing that was tied to the original deal.

A shareholder meeting that had been scheduled for July 10 to vote on the transaction has been indefinitely postponed. The firms also canceled pending redemption requests from SPAC investors, returning those shares to shareholders.

Renegotiation Amid Market Headwinds

The companies said they will pursue amended terms that “better reflect current market conditions.” They did not disclose the potential financial terms of a revised transaction or provide a timeline for when a new agreement could be reached.

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The move follows a report from Bloomberg News that the transaction had struggled to secure adequate funding. The report noted that Cantor had allowed some investors in the deal's private financing to reduce their commitments ahead of the planned shareholder vote.

Context of the Proposed Merger

The merger was intended to take BSTR Holdings public. The firm was founded by Adam Back, the chief executive of Blockstream and one of Bitcoin's earliest developers, with the express purpose of raising capital to purchase and hold Bitcoin.

Any revised transaction would be detailed in future regulatory filings if a new agreement is reached, the companies said.