What You Need to Know

Brandon Lutnick, chairman of Cantor Fitzgerald, is advancing the ‘Saylorization’ trend with plans to launch a $4 billion Bitcoin (BTC) investment vehicle.

The deal involves late-stage negotiations with Adam Back, CEO of Blockstream. The initiative will be anchored through Cantor Equity Partners 1, a special-purpose acquisition company (SPAC).

Major Bitcoin Acquisition Deal Puts Cantor in Spotlight 

According to the Financial Times, Back is expected to contribute up to 30,000 Bitcoin to Cantor Equity Partners 1. The coins are worth approximately $3.5 billion at current market prices. This blank cheque company has already raised $200 million in cash through an initial public offering (IPO) in January. 

A ‘blank cheque’ company is a type of corporation formed without specific business operations or assets. It is created to raise money from the public with the goal of acquiring or merging with an existing business.

Thus, as part of the deal, the company will be renamed BSTR Holdings. Furthermore, Back’s contribution of Bitcoin will be exchanged for shares in this new entity. 

The firm will also raise up to $800 million in outside capital, which will help finance more Bitcoin purchases. The combined $4 billion deal positions BSTR as a major emerging player in the institutional adoption of Bitcoin.

“A deal could come as early as this week, said the people, who cautioned that terms could still change. If completed in the coming days, it would come during what Republican lawmakers have dubbed “crypto week” as they debate legislation tied to digital currencies,” Financial Times wrote.

This initiative follows Cantor Fitzgerald’s earlier $3.6 billion Bitcoin venture in April. The financial services firm, through its SPAC, collaborated with SoftBank, Bitfinex, and Tether, the issuer of the world’s largest stablecoin, to establish Twenty One Capital.

“Cantor’s combined crypto purchases between its two vehicles, BSTR Holdings and Twenty One Capital, could reach nearly $10 billion this year,” the report added.

Meanwhile, Cantor Fitzgerald isn’t alone in increasing its Bitcoin exposure. Lately, a growing number of firms have incorporated Bitcoin in their balance sheets, following in Strategy’s (formerly MicroStrategy) footsteps.

In fact, BeInCrypto previously reported that public companies have continued to outpace exchange-traded funds (ETFs) in Bitcoin acquisition for three consecutive quarters. The institutional interest in Bitcoin has also contributed greatly to its price rallies and legitimized its position as a store of value.