Cantor Fitzgerald to Acquire $3 Billion in Bitcoin Through SPAC

Cantor Fitzgerald, a prominent financial services firm, is reportedly in advanced discussions to acquire a substantial amount of Bitcoin through its Special Purpose Acquisition Company (SPAC). The deal, valued at approximately $4 billion, involves purchasing Bitcoin from Blockstream Capital, a crypto trading group founded by Adam Back. This acquisition would significantly bolster Cantor Fitzgerald's position as a major player in the Bitcoin market, further expanding its SPAC-led crypto strategy.

The negotiations are in their late stages, with Cantor Equity Partners 1, a SPAC backed by Cantor Fitzgerald, reportedly in talks to purchase over $3 billion worth of Bitcoin. This move comes at a time when there is renewed political support for cryptocurrencies, which could provide a favorable environment for such a significant investment. The deal would involve the acquisition of roughly 30,000 Bitcoin, which, at current prices, is valued at over $3 billion.

This potential acquisition underscores the growing interest and investment in Bitcoin by traditional financial institutions. Cantor Fitzgerald's move to become a major Bitcoin buyer aligns with the broader trend of institutional adoption of cryptocurrencies. The firm's strategy to leverage its SPAC for this purpose highlights its commitment to integrating digital assets into its investment portfolio.

The deal, if finalized, would mark a significant milestone in the cryptocurrency industry, demonstrating the increasing acceptance and integration of Bitcoin into mainstream financial markets. It also reflects the strategic vision of Cantor Fitzgerald to capitalize on the growing demand and potential of digital currencies. The acquisition would not only enhance Cantor Fitzgerald's crypto holdings but also position it as a key player in the evolving landscape of digital finance.

This move follows Cantor Fitzgerald’s earlier agreement to create a SPAC-backed Bitcoin treasury firm, dubbed Twenty One, with a planned $3.9 billion war chest, backed by Tether, Bitfinex, and SoftBank. The exact value of the proposed deal remains unclear, as neither Cantor Equity Partners 1 nor Blockstream Capital has responded to requests for comment. The discussions come as crypto investors turn to SPACs or reverse mergers to take their crypto-related ventures public under a favorable atmosphere.

In May, Nakamoto Holdings, founded by David Bailey of Bitcoin Magazine, announced that it had raised $710 million for its own Bitcoin treasury firm, which it planned to take public through a merger with KindlyMD, Inc. A month later, the Anthony Pompliano-led ProCap Financial joined the fray, revealing it had raised more than $750 million to go public through a SPAC with Columbus Circle Capital. The talks also come as a growing number of public companies begin to add Bitcoin to their balance sheets, in a bid to emulate Michael Saylor’s software firm, Strategy’s playbook.

Cantor Equity Partners 1 raised $200 million in cash in an initial public offering at the beginning of the year. The discussions come as a growing number of public companies begin to add Bitcoin to their balance sheets, in a bid to emulate Michael Saylor’s software firm, Strategy’s playbook. More than 142 publicly-traded companies now hold Bitcoin, according to the latest figures. Those companies have acquired a combined $112 billion worth, with Strategy’s holdings accounting for roughly two-thirds of that amount.