Adam Back, Cantor Bitcoin Treasury Listing Delayed amid Crypto Sell-Off

In a filing with the US Securities and Exchange Commission (SEC) on 24 Jun, Cantor Equity Partners said shareholders will now vote on the transaction on 2 Jul instead of 26 Jun. Cantor said the delay was related to previously announced private financing arrangements supporting the merger, but did not provide further details. 

Cantor Equity Partners I is a special purpose acquisition company (SPAC) sponsored by an affiliate of investment bank Cantor Fitzgerald. A SPAC is a publicly listed shell company that raises money from investors before merging with a private business, allowing that company to go public without pursuing a traditional initial public offering (IPO). 

BSTR Holdings is led by Bitcoin developer Adam Back and plans to operate as a Bitcoin treasury company, or DAT, meaning it intends to hold Bitcoin (BTC) as its primary corporate asset rather than using cash reserves or traditional investments. 

Another Cantor deal 

The postponement comes as crypto markets remain under heavy pressure after US inflation data that exceeded the Federal Reserve's target range triggered a broad sell-off in risk assets. Bitcoin (BTC) traded at around $59,400 at 17:12UTC on 25 Jun, down 2.5% over the previous 24 hours and more than 32% over the past 12 months. 

Another crypto company backed by a Cantor SPAC is also nearing the public markets. Shareholders of Cantor Equity Partners II are scheduled to vote on 29 Jun on its proposed merger with tokenization platform Securitize. The company is reportedly targeting a $1bn valuation.  

Pressure on treasury model 

The delay comes as publicly traded Bitcoin treasury companies face growing pressure following a sharp decline in the price of Bitcoin and steep falls in many companies' share prices. 

The postponement also comes as the business model underpinning digital asset treasury companies faces growing scrutiny. 

The sector's largest player, Strategy, has come under pressure after Bitcoin's recent decline dragged down both its common shares and STRC, a preferred stock the company uses to help finance Bitcoin purchases. After closing at $80.84 on 24 Jun, STRC extended its losses to $75.99 by 17:12UTC on 25 Jun, leaving the shares about 24% below their intended $100 reference value. 

The widening discount has fuelled debate over whether the financing structure can continue supporting Strategy's aggressive Bitcoin acquisition programme, particularly after the company disclosed its first Bitcoin sale in four years in May to help fund STRC dividend payments. 

Strategy's MSTR shares also extended their losses, falling to $86.25 by 17:14UTC on 25 Jun, their lowest level since March 2024.