Cantor Fitzgerald’s blank‑cheque affiliate is in late‑stage talks to acquire more than $3 billion in Bitcoin (BTC) from Adam Back’s Blockstream Capital through a transaction that could exceed $4 billion, the Financial Times reported on July 15. 

Cantor Equity Partners 1, a special‑purpose acquisition company that raised $200 million in a January IPO, would issue new shares to Back in exchange for as much as 30,000 BTC. The amount represents approximately $3 billion at current prices.

Furthermore, the firm intends to seek up to $800 million in additional outside capital for further Bitcoin purchases. Upon completion of the transaction, the vehicle will be renamed BSTR Holdings.

Deal details

If completed, the deal would mirror a $3.6 billion Bitcoin buying venture, Twenty One Capital, that Cantor Fitzgerald’s Brandon Lutnick set up with SoftBank and Tether in April.

Combined, the two SPACs could accumulate nearly $10 billion in Bitcoin this year, positioning Cantor as one of the most active institutional buyers of the asset. 

Back is best known for inventing Hashcash and co-founding Blockstream in 2014. As part of the deal, Back will swap the contributed Bitcoin for equity in the public firm.

Blockstream Capital’s stake would rise alongside any subsequent purchases the SPAC finances with newly raised capital. Brandon Lutnick was named chair of Cantor Fitzgerald in February after his father, Howard Lutnick, became US Commerce Secretary.

Cantor’s move follows a playbook popularized by Strategy, whose Bitcoin treasury approach has prompted a wave of corporations and SPACs to raise equity or issue convertible bonds to buy BTC outright. 

Timing and regulatory backdrop

Negotiators aim to finalize terms as early as this week, placing the announcement in the midst of what Republican lawmakers have branded “Crypto Week,” during which the House is debating multiple digital asset bills. 

Cantor’s push also aligns with President Donald Trump’s deregulatory stance toward crypto markets, a shift that executives describe as conducive to large balance sheet allocations. 

The transaction would require shareholder approval and review by the Securities and Exchange Commission of updated disclosures detailing the Bitcoin contribution and capital raise. 

Should the SPAC complete its acquisition and subsequent fundraising, BSTR Holdings would emerge as one of the world’s largest listed holders of Bitcoin, trailing only Strategy and a handful of spot ETF trusts.

Mentioned in this article

The global investment platform of financial services firm Cantor Fitzgerald is launching a new product that will allow investors to benefit from the price movement of Bitcoin (BTC) while providing a hedge against risks.

Cantor Fitzgerald Asset Management (CFAM) says that the Fitzgerald Gold Protected Bitcoin Fund will give investors direct exposure to the flagship cryptocurrency as well as one-to-one downside protection based on the price of gold.

The firm, which holds approximately $14.8 billion in assets under management (AUM), says the fund will be its first Bitcoin-focused investment vehicle.

Says Cantor Fitzgerald chairman Brandon G. Lutnick,

“At Cantor, we are focused on delivering innovative products that support clients seeking exposure to digital asset investments. We believe this is a truly groundbreaking investment vehicle—one that helps investors to tap into Bitcoin’s potential growth with downside protection based on the price of gold.”

CFAM says the fund is structured with a five-year duration and will begin accepting capital from investors in the coming weeks.

On Tuesday, Cantor Fitzgerald also announced that its Bitcoin Financing Business has successfully executed its first transactions. The new business venture, which expects to make $2 billion in financing available in its initial phase, provides leverage to institutional investors of the benchmark crypto asset.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Cantor Fitzgerald, a global financial services firm specializing in investment banking, is announcing the launch of a business aimed at providing leverage to institutional Bitcoin (BTC) investors.

According to a new press release, the firm’s new Bitcoin Financing Business has performed its first transactions successfully.

Cantor’s Bitcoin Financing Business anticipates making $2 billion in financing available in its introductory phase to provide leverage to institutional BTC investors.

Says Cantor Fitzgerald Chairman Brandon Lutnick of the new business venture,

“Early on, Cantor recognized the transformative impact digital asset financial services would have on the global economy.

This achievement highlights how the combination of Cantor’s deep expertise and entrepreneurial spirit creates a distinct advantage on Wall Street and further solidifies our position as a leading investment bank for crypto and digital asset clients.”

Cantor has partnered with Anchorage Digital and Copper.co as digital asset custodians on the business venture.

Comments Cantor’s Co-Chief Executive Officer and Global Head of Fixed Income, Christian Wall,

“These transactions mark a milestone for Cantor and the traditional finance industry, and demonstrate how innovative institutional expertise can unlock capital and deliver sophisticated financing solutions for institutional Bitcoin investors.

Institutions holding Bitcoin are looking to broaden their access to diverse funding sources, and we are excited to support their liquidity needs to help them drive long-term growth and success.”

Institutional investors poured $2.9 billion into Bitcoin products last week alone, according to CoinShares.

BTC is worth $110,253 at time of writing, up 5% in the last week.

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Wall Street financial firm Cantor Fitzgerald has closed its first Bitcoin lending deal nearly a year after announcing its crypto lending services.

According to a May 27 Bloomberg report, Cantor provided Bitcoin-backed loans to FalconX and Maple Finance. FalconX, a digital asset broker, said it secured a facility worth over $100 million as part of a “broader credit framework,” while Maple Finance reportedly closed the first tranche of an agreement with Cantor.

The service allows companies holding Bitcoin to borrow funds and use the cryptocurrency as collateral, providing a way to unlock liquidity without selling their BTC holdings. Cantor announced its Bitcoin financing business with an initial capital of $2 billion in July 2024, targeting institutional investors seeking to leverage their Bitcoin. At the time, the company said Anchorage Digital and Copper would serve as custodians and collateral managers in the venture.

Credit markets are a fundamental part of the financial system, allowing capital to flow between borrowers and lenders and supporting economic activity across sectors. Their central role also means they can contribute to financial distress when risks are mismanaged. While mirroring some functions of traditional finance, crypto credit markets have been operating with less regulatory oversight.

Digital asset crisis of 2022

This dynamic was evident during the 2022 crisis in the digital asset sector. Celsius Network, once a leading crypto lending platform, collapsed after engaging in risky financial practices and facing allegations of fraud. Similarly, BlockFi filed for Chapter 11 bankruptcy in November 2022 following significant exposure to the collapse of crypto exchange FTX.

According to a report from Galaxy, the total crypto lending market, including crypto-backed collateralized debt positions (CDPs) tied to stablecoins, stood at $36.5 billion in the last quarter of 2024, marking a 43% decline from its all-time high of $64.4 billion in 2021. Despite the broader contraction, onchain lending platforms have seen a dramatic rebound, with open borrowed positions surging to $19.1 billion by Q4 2024, a 959% increase over two years.

Cantor’s crypto arm

Cantor is one of the most traditional financial services companies in the United States. Founded in 1945, it offers a range of services for institutions, including investment banking, brokerage, equity and fixed-income sales and trading. The company claims to serve over 5,000 clients across 20 countries.

The company’s CEO, Howard Lutnick, has been an advocate for classifying Bitcoin as a commodity, akin to gold and oil, and has called for clearer regulatory frameworks for cryptocurrencies in the US. Lutnick was also appointed to co-lead US President Donald Trump’s transition team in 2024.

Cantor is also one of the managers of Tether’s US Treasury securities portfolio backing its stablecoin. In early 2024, the firm acquired a 5% stake in Tether.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

The chair of the brokerage company Cantor Fitzgerald is reportedly creating a consortium with SoftBank, Tether and Bitfinex to take advantage of the booming crypto industry under US President Donald Trump.

Citing people familiar with the matter, the Financial Times reports that Brandon Lutnick, son of US Commerce Secretary Howard Lutnick, is joining hands with the three firms to create a multibillion-dollar Bitcoin (BTC) acquisition vehicle that aims to replicate the success of MicroStrategy, the largest corporate holder of the flagship cryptocurrency.

In January, the special purpose acquisition company called Cantor Equity Partners raised $200 million, which will be used to create a new firm called 21 Capital. The vehicle will also receive $3 billion worth of Bitcoin from the partners.

The stablecoin issuer Tether will contribute $1.5 billion in BTC while the Japanese multinational investment holding company Softbank and the crypto exchange Bitfinex will give $900 million and $600 million, respectively, of the crypto asset.  The investments, valued at $85,000 per BTC, will be converted into shares in 21 Capital at $10 per share.

The vehicle also plans to raise a $350 million convertible bond and a $200 million private placement of equity to buy more Bitcoin.

The sources say the deal will likely be announced in the coming weeks, but caution that it may not push through, or the numbers could change.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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