Bitcoin Standard Treasury Company has agreed to merge with Cantor Equity Partners I (CEPO) in a Spac transaction that will take the Bitcoin-oriented Treasury vehicle public on Nasdaq under the Ticker BSTR once the deal is closed.
The parties signed the business combination agreement of 16 July and published the announcement today.
BSTR is planning to launch with 30,021 Bitcoin (BTC) and up to $ 1.5 billion in Fiat -pipe financing, whereby the CEPO trust contributes to around $ 200 million, subject to redemption.
The financing stack comprises $ 400 million common equity committed at $ 10 per share, up to $ 750 million in convertible senior notes convertible for $ 13, and up to $ 350 million in convertible preference shares that are also convertible with a common equivalent of $ 13.
The company has also protected 5,021 BTC in kind financing, which offered long-term Bitcoin participants at a reference price of $ 10 shares.
Founder shareholders advised by Blockstream Capital Partners will contribute 25,000 BTC to the same reference of $ 10.
BSTR stated that combined resources would give it the fourth largest Bitcoin treasure box of the company from July 17.
In particular the announcement confirms recent reports That Cantor Fitzgerald was in conversation to acquire about $ 3 billion in Bitcoin from Blockstream.
Veterans join as managers
Adam Back will serve as CEO and Sean Bill as Chief Investment Officer. Back is known for the inventing of Hashcash, the proof-of-work system that is cited in the white paper of Bitcoin and co-founder of Blockstream.
Bill previously helped in promoting one of the earliest Bitcoin allocations by an American public pension plan and focused on integrating digital assets into institutional portfolios.
BSTR framed its mandate as the collection of Bitcoin, generating bitcoin yield in the species and advising companies and sovereigns on Bitcoin-bound treasury strategies, measured in BTC per share.
Back said in the announcement:
“By securing both Fiat and Bitcoin financing on the first day, the first convertible preferred round announced in combination with a bitcoin merger of the Treasury Spac places, we have an unprecedented firepower behind a single mission: maximizing Bitcoin ownership per share.”
Cantor Equity Partners I Chairman Brandon Lutnick called the transaction “another step towards the integration of the Bitcoin economy and traditional finances.”
The merger was approved by the boards of both BSTR and CEPO. Closure requires approval of CEPO shareholders and the fulfillment of usual conditions.
CEPO will submit additional information, including the business combination agreement, pipe documentation and an investment presentation, in current reports on form 8-K and an upcoming Form S-4 registration statement, which will contain the prospectus material.
