Investment firm Cantor Fitzgerald moves closer to $4 billion Bitcoin transaction with Adam Back from Blockstream
In a significant development for the cryptocurrency industry, Adam Back, a founding figure in the world of digital assets, is reportedly in advanced talks for a potential $4 billion Bitcoin acquisition deal with Cantor Fitzgerald.
Back, known for his work on the Hashcash cryptographic proof system—the foundation for Bitcoin mining—co-founded blockchain company Blockstream in 2014. The company has backing from notable investors including Khosla Ventures and Baillie Gifford.
The discussions between Back and Cantor Equity Partners aim to create a large public Bitcoin treasury company, holding significant Bitcoin assets from day one. The transaction, expected around early to mid-2025, includes raising up to $800 million in additional outside capital for further Bitcoin purchases, bringing the total transaction value to over $4 billion.
The deal is unique due to its scale and technical complexity. It involves Cantor Equity Partners 1, a $200 million blank check company, purchasing over $3 billion worth of Bitcoin from Back's holdings. If completed, the transaction could consolidate Bitcoin holdings among major institutional players and influence other traditional financial firms to pursue similar digital asset strategies.
Cantor's massive Bitcoin accumulation strategy signals growing institutional confidence in Bitcoin as a treasury asset. This deal comes during what Republican lawmakers have dubbed 'crypto week' as Congress debates digital currency legislation.
Brandon Lutnick, son of US Commerce Secretary Howard Lutnick and named chair of Cantor Fitzgerald, has already struck a $3.6 billion crypto venture with SoftBank and Tether, demonstrating the firm's commitment to building a substantial digital asset portfolio. If the deal with Back materializes, it would rename Cantor Equity Partners 1 as BSTR Holdings.
The SPAC-to-Bitcoin trend is accelerating, with this deal being another significant step. Combined with the earlier SoftBank-Tether deal, Cantor's crypto purchases across its two vehicles—BSTR Holdings and Twenty One Capital—could reach nearly $10 billion this year.
Notable players pursuing similar Bitcoin treasury strategies include Trump Media & Technology Group and blank check vehicles led by crypto promoter Anthony Pompliano. The Cantor-Blockstream deal is the latest example of special purpose acquisition companies (SPACs) being used for large-scale Bitcoin acquisitions, mirroring the approach taken by Michael Saylor's Strategy.
Recently, Back made a $15 million convertible bond investment in Swedish bitcoin treasury company H100 Group. If the deal with Cantor Fitzgerald closes as early as this week, it could potentially mark the second major Bitcoin deal for Brandon Lutnick.
The trend of using SPACs for Bitcoin acquisitions has gained momentum under the Trump administration's crypto-friendly policies. This transaction, if successful, would be a testament to the growing acceptance and integration of Bitcoin in mainstream finance.
