Brandon Lutnick, chairman of Cantor Fitzgerald, is pushing forward the “Saylorization” trend with plans to launch a $4 billion Bitcoin (BTC) investment vehicle.
The deal includes late negotiations with Blockstream CEO Adam Back. This initiative is locked through Cantor Equity Partners 1, a Special Purpose Acquisition Company (SPAC).
Major Bitcoin Acquisition Transactions bring Cantor to the spotlight
According to the Financial Times, Back is expected to donate up to 30,000 Bitcoin to Cantor Equity Partners 1. The coin is worth around $3.5 billion at current market prices. The blank checking company has already raised $200 million in cash through its initial public offering (IPO) in January.
“Blank Check” companies are a type of companies formed without specific business operations or assets. It is created to raise funds from the public with the goal of acquiring or merging existing businesses.
Therefore, as part of the transaction, the company will be renamed BSTR Holdings. Additionally, Back’s Bitcoin contribution will be exchanged for stocks in this new entity.
The company will also raise up to $800 million in external capital and help fund more Bitcoin purchases. The total $4 billion transaction serves as BSTR as a leading emerging player in the institutional adoption of Bitcoin.
“The transaction could be made as early as this week. He warned that conditions could still change. If completed in the next few days, it would be called “crypto week” when Republican lawmakers discuss laws tied to digital currency,” the Financial Times wrote.
The initiative follows Cantor Fitzgerald’s previous $3.6 billion Bitcoin venture in April. The financial services company has established two capitals through SPAC, working with SoftBank, Bitfinex and The Tether (issuer of the world’s largest Stablecoin).
“The total cryptocurrency purchases between Cantor’s two vehicles, BSTR Holdings and Twenty One Capital, could reach nearly $10 billion this year,” the report added.
Meanwhile, Cantor Fitzgerald doesn’t just increase Bitcoin exposure. More and more companies are recently embedding Bitcoin in their balance sheets, following in the footsteps of strategies (previously micro-strategic strategies).
In fact, Beincrypto previously reported that public companies have outperformed Exchange Trade Funds (ETFs) in their Bitcoin acquisitions for the third consecutive quarter. Institutional interest in Bitcoin also contributed significantly to its price rise and justified its status as a valuable store.
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