Cantor Fitzgerald SPAC and Adam Back's BSTR Terminate Merger Agreement, Seek New Terms

A special purpose acquisition company (SPAC) backed by Cantor Fitzgerald and Bitcoin investment firm BSTR Holdings have terminated their original merger agreement. The companies announced on Wednesday that they will instead attempt to negotiate a revised deal with terms better suited to the current financial landscape.

Deal Restructured

Cantor Equity Partners I Inc. and BSTR Holdings said they will not proceed with the merger agreement signed last year. In a joint statement, they cited a need to pursue amended terms that "better reflect current market conditions."

As a result of the termination, the companies have also scrapped the private financing that was tied to the original merger. A shareholder meeting that had been scheduled for July 10 to vote on the deal has been postponed indefinitely, and pending redemption requests from SPAC investors have been canceled, returning those shares to their holders.

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Background on the Transaction

The proposed merger was intended to take BSTR Holdings public. The firm is led by Adam Back, the chief executive of Blockstream and a prominent early developer in the Bitcoin ecosystem. BSTR's stated strategy was to use the capital raised from the public listing to acquire and hold Bitcoin.

The decision to renegotiate follows earlier reports that the transaction was facing difficulties. According to a previous report from Bloomberg News, the deal had struggled to secure sufficient funding, prompting Cantor to allow some investors in the private financing round to reduce their commitments ahead of the planned shareholder vote.