Brandon Lutnick and Adam Back in Advanced Negotiations
According to a report from the Financial Times, Brandon Lutnick, the chairman of Cantor Fitzgerald, is engaged in advanced negotiations with cryptocurrency pioneer Adam Back regarding a significant acquisition of bitcoin, which could amount to $4 billion through a special purpose acquisition company (SPAC). The SPAC, known as Cantor Equity Partners 1, initially raised $200 million in its IPO earlier this year and is reportedly planning to purchase more than $3 billion worth of bitcoin, as informed by sources familiar with the discussions.
Details of the Bitcoin Acquisition
Adam Back, a notable figure in the cryptocurrency realm and founder of Blockstream, is expected to contribute approximately 30,000 BTC to the deal, which would serve as the cornerstone of the transaction valued over $3 billion. The overall structure of the agreement is anticipated to include raising around $800 million in additional capital from outside investors, aimed at facilitating further bitcoin acquisitions. Consequently, the total potential value of this deal could balloon to about $4 billion.
Share Acquisition and Future Plans
In return for his significant contribution of bitcoin, Back and the Blockstream entity would acquire shares in the SPAC, which is projected to undergo a rebranding to BSTR Holdings after the deal closes.
Commitment to Digital Currencies
Earlier this year, Lutnick conveyed a positive perspective on the future of digital currencies during an engaging conversation with Tether’s CEO, Paolo Ardoino, emphasizing Cantor Fitzgerald’s long-term commitment to the sector. He highlighted bitcoin’s defining characteristic, its capped supply of 21 million coins, asserting,
“The beauty of Bitcoin is its fixed supply.”
Potential Timeline for Agreement
As per the Financial Times report published on Tuesday, it is suggested that an agreement might be finalized as soon as this week, though the specific terms may still be subject to revisions.
