Cantor Fitzgerald SPAC, Adam Back’s BSTR Holdings Scrap Merger Deal to Renegotiate Terms

A special purpose acquisition company (SPAC) backed by Cantor Fitzgerald and BSTR Holdings, a Bitcoin investment firm led by developer Adam Back, announced Wednesday they have mutually terminated their planned merger agreement. The companies stated they intend to negotiate a revised deal with terms better suited to the current financial landscape.

Original Deal Terminated

Cantor Equity Partners I Inc. and BSTR Holdings will not proceed with the merger agreement signed last year, according to a joint statement. As a result of the termination, several key components of the original transaction have been unwound:

• The private financing component tied to the merger has been scrapped.
• A shareholder meeting scheduled for July 10 to vote on the deal has been indefinitely postponed.
• All pending redemption requests from SPAC investors have been canceled, and their shares have been returned.

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Funding Headwinds and Market Conditions

The stated reason for abandoning the original terms is to pursue an amended agreement that would "better reflect current market conditions." The companies did not disclose potential new financial terms or provide a timeline for when a revised agreement might be reached. Any new transaction would be detailed in future regulatory filings.

The move follows an earlier 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. The merger was originally designed to take BSTR Holdings public, enabling the firm, led by Blockstream CEO Adam Back, to raise capital for the purpose of acquiring and holding Bitcoin.