Cantor Fitzgerald SPAC and Adam Back's BSTR Holdings Terminate Merger, Plan to Negotiate New Deal

A blank-check company backed by Cantor Fitzgerald and Bitcoin investment firm BSTR Holdings, led by crypto pioneer Adam Back, have scrapped their original merger agreement signed last year. The two parties announced Wednesday they will instead attempt to negotiate a revised deal with terms that better reflect current market conditions.

Deal Termination Details

As a result of the termination, the companies have also canceled the private financing that was tied to the original transaction. A shareholder meeting that had been scheduled for July 10 to vote on the merger has been postponed indefinitely.

Cantor Equity Partners I Inc., the special purpose acquisition company (SPAC), also said it has canceled all pending redemption requests from its investors. Those shares will be returned to the respective shareholders. The companies did not disclose potential new financial terms or a timeline for reaching a new agreement.

Context and Background

Ad

The proposed merger was intended to take BSTR Holdings public. The firm, led by Blockstream CEO Adam Back, was established to raise capital specifically for the purpose of acquiring and holding Bitcoin. The collapse of the initial agreement reflects ongoing challenges in the SPAC market, which has cooled significantly from its peak.

According to an earlier report from Bloomberg News, the transaction had already encountered difficulties securing sufficient funding. The report noted that Cantor had allowed some investors in the deal's private financing to scale back their commitments ahead of the planned shareholder vote, signaling waning investor appetite for the original terms.

Next Steps

Cantor Equity Partners I and BSTR Holdings stated they will pursue amended terms for a potential transaction. Should a new agreement be reached, the details will be disclosed in future regulatory filings. For now, the plan to list BSTR on a public exchange is on hold pending the outcome of these new negotiations.