BSTR, Cantor Equity Partners SI boards unanimously approved deal

BSTR, Cantor Equity Partners SI boards unanimously approved deal

In a significant move for the cryptocurrency and traditional finance sectors, BSTR Holdings Inc. and Cantor Equity Partners I Inc. (CEPO) have announced a definitive agreement for a business combination. The boards of both companies have unanimously approved the deal, which will see BSTR go public through a merger with CEPO. The transaction is expected to close in the fourth quarter of 2025, subject to CEPO shareholder approval and other customary closing conditions.

The merger will secure up to $1.5 billion in financing for BSTR, including $400 million in committed common equity, up to $750 million in convertible senior notes, and up to $350 million in convertible preferred stock. Additionally, the company will launch with a Bitcoin treasury of 30,021 Bitcoin, making it the fourth-largest public corporate Bitcoin treasury globally [1].

Dr. Adam Back, inventor of the Hashcash proof-of-work algorithm and co-founder of Blockstream, will serve as CEO of BSTR, while Sean Bill, who previously managed one of the first Bitcoin allocations by a U.S. public pension fund, will be chief investment officer. Together, they will lead the company in its mission to bring Bitcoin's integrity to modern capital markets [2].

The transaction includes 5,021 Bitcoin contributed through an in-kind private investment in public equity (PIPE) offering, plus 25,000 Bitcoin from founding shareholders. CEPO will contribute up to $200 million, subject to shareholder redemptions. The combined company will trade under the ticker "BSTR" [1].

Cantor Fitzgerald is serving as financial advisor to CEPO and sole placement agent for the PIPE offerings. The transaction requires regulatory approval and CEPO shareholder consent.

References:
[1] https://www.streetinsider.com/Corporate+News/BSTR+to+go+public+via+SPAC+merger+with+up+to+%241.5+billion+financing/25063522.html
[2] https://www.stocktitan.net/news/CEPO/bitcoin-standard-treasury-company-to-go-public-through-business-eynbqhyazv65.html