- Reports of Adam Back’s investment of 30,000 BTC have significantly boosted the CEPO’s value, leading to a 25% surge.
- The SPAC plans to raise an extra US$800 million for further Bitcoin purchases.
- A name change to BSTR Holdings is expected as part of the restructuring.
Cantor Equity Partners 1 (CEPO) jumped 25% after reports that Bitcoin pioneer Adam Back plans to contribute 30,000 BTC, worth around US$3.5 billion (AU$5.36 billion), to the firm.
The SPAC, led by Brandon Lutnick, is reportedly in advanced talks to acquire the Bitcoin from Back and Blockstream in exchange for equity. The entity would be renamed BSTR Holdings if the deal proceeds.
In addition to Back’s contribution, CEPO is seeking to secure an extra US$800 million (AU$1.22 billion) to fund further Bitcoin acquisitions, bringing the total deal size to over US$4 billion (AU$6.14 billion).
Market optimism surrounding the potential agreement pushed CEPO’s share price up by 25% to nearly US$15 (AU$23.01), compared to its pre-news level of US$12 (AU$18.41).
Related: Satoshi Era Whale Splashes $4.6B in 40,000 BTC: First-Ever Cash-Out
Back’s Strategic Vision
James Van Straten, a senior analyst at CoinDesk, dismissed speculation that Back is attempting to liquidate his holdings. He suggested the move reflects Back’s strategic goal of embedding Bitcoin in institutional investment portfolios. Van Straten said Back has a record of using his own funds to support similar initiatives, highlighting his focus on expanding Bitcoin’s presence in traditional finance.
“Rather than cashing out, Back seems intent on leveraging institutional vehicles to push Bitcoin further into the financial mainstream, bridging the gap between btc-native innovation and Wall Street capital.”
Back, whose Hashcash proof-of-work system laid the groundwork for Bitcoin’s mining model, co-founded Blockstream in 2014. The firm is supported by major investors including Khosla Ventures and Baillie Gifford.
The transaction, if finalised, would continue Cantor’s push into the digital asset space, building on a US$3.6 billion (AU$5.51 billion) deal earlier this year with SoftBank and Tether. It also aligns with a broader trend of using public vehicles to acquire crypto assets, similar to recent moves by Trump Media and entities linked to Anthony Pompliano.
A conclusion to the deal could come during “crypto week” in Congress, where lawmakers are debating digital asset regulation. According to The Financial Times, Cantor’s combined crypto holdings via BSTR Holdings and Twenty One Capital could reach nearly US$10 billion (AU$15.34 billion) this year.
Related: Crypto Week Stalls: US House Halts Procedural Vote on Landmark Stablecoin Bills
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