Cantor Fitzgerald, a prominent financial firm, is preparing to acquire $3.5 billion worth of Bitcoin from Blockstream Capital. This move could significantly enhance its holdings in crypto assets and impact the market.
Deal Details
According to reports, the acquisition will take place through Cantor Equity Partners 1, a SPAC that raised $200 million earlier this year. Blockstream is expected to contribute up to 30,000 BTC, valued at approximately $3.5 billion, in exchange for a stake in the SPAC, which will reportedly be renamed BSTR Holdings. The deal also includes provisions to raise an additional $800 million for future Bitcoin acquisitions.
Growing Interest in Crypto Assets
This is not Cantor Fitzgerald's first attempt to enter the digital asset market. In April, the firm partnered with SoftBank and Tether on a $3.6 billion project to launch a Bitcoin acquisition vehicle. Together with this latest initiative, Cantor's total planned Bitcoin-related investments could reach close to $10 billion by 2025. Brandon Lutnick, who took over leadership of the firm in February, is spearheading the crypto investment strategy.
Historical Significance of the Deal
Adam Back's involvement in the transaction adds historical significance since he is a longtime Bitcoin advocate and founder of Blockstream. His work on the Hashcash protocol in 1997 was referenced by Satoshi Nakamoto in the original Bitcoin whitepaper, forming the foundation of the proof-of-work system. If the deal proceeds as expected, it will highlight the growing institutional interest in Bitcoin.
If the deal goes through, it may represent a significant step for Cantor Fitzgerald and the cryptocurrency market as a whole, emphasizing investor interest in Bitcoin as a key financial asset.
