Cantor Fitzgerald Plans $3.5B Bitcoin Purchase from Blockstream

Cantor Fitzgerald's SPAC, Cantor Equity Partners 1, is negotiating to buy around 30,000 BTC from Blockstream Capital for $3.5 billion, FT reports. The deal would give Blockstream equity shares in a new company called BSTR Holdings instead of cash.

The SPAC raised $200 million in January and is now working to secure up to $800 million more from outside investors. These funds would cover extra Bitcoin purchases, potentially bringing the total deal value above $4 billion. The purchase would make Cantor one of the biggest institutional Bitcoin buyers this year.

Brandon Lutnick leads the negotiations for Cantor. He chairs the company and is the son of Commerce Secretary Howard Lutnick. Sources close to the talks say the deal could finish as early as this week in New York.

Under the agreement, Blockstream would trade its 30,000 Bitcoin directly for SPAC shares. The additional fundraising would help Cantor grow its Bitcoin holdings through its existing investment arm, Twenty One Capital.

Cantor already announced another Bitcoin venture in April worth $3.6 billion with SoftBank and Tether. Together, these two SPAC-backed companies could buy nearly $10 billion worth of Bitcoin in 2025.

Adam Back founded Blockstream after creating the Hashcash Proof-of-Work system that helped shape Bitcoin's design. Back's company would keep an ownership stake in BSTR Holdings, tying their profits to Bitcoin's future performance.

Read on: Adam Back Invests €12.1M in Bitcoin to Back The Blockchain Group’s BTC Strategy

The deal represents a growing trend of public companies building their business around direct cryptocurrency ownership rather than traditional revenue streams. These firms focus on accumulating digital assets as their main investment strategy.

Neither Cantor Equity Partners 1 nor Blockstream Capital made public statements about the ongoing discussions. The negotiations remain private while both sides work toward completing the transaction.

The purchase would significantly expand Cantor's presence in the cryptocurrency market and increase its Bitcoin exposure through BSTR Holdings.

Also read: Cantor Fitzgerald Unveils Gold-Backed Bitcoin Fund