Bitcoin Advocate Adam Back Launches Bitcoin Treasury Firm with 30,000 BTC

Bitcoin Standard Treasury Company, known as BSTR, has entered into a definitive agreement to go public through a merger with Cantor Equity Partners I, a special-purpose acquisition company listed under the ticker CEPO. Cantor is run by Brandon Lutnick, son of Trump’s U.S. Commerce Secretary, Howard Lutnick.

The firm, backed by cryptography expert Adam Back, aims to establish itself as a major player in corporate Bitcoin holdings. This move aligns with the growing trend of companies adopting Bitcoin as a treasury asset, a movement led mainly by Michael Saylor and Tom Lee.

Adam Back will serve as CEO of BSTR. Sean Bill, an experienced investor who facilitated early institutional Bitcoin allocations for a U.S. pension fund, joins as chief investment officer. The leadership team brings expertise in both blockchain and traditional finance to guide the company's strategy.

BSTR plans to debut with more than 30,000 Bitcoin on its balance sheet, valued at over $3.5 billion based on prices at the time of the announcement. This positions the firm as the fourth-largest Bitcoin holder among publicly traded companies. Additional financing through a private placement in public equity will provide up to $1.5 billion, enabling further Bitcoin purchases that could elevate its ranking further.

Key Details of the BSTR Structure and Financing

The initial Bitcoin holdings stem from contributions by founding shareholders, including 25,000 BTC from Adam Back and associated entities, along with 5,021 BTC in-kind from early investors. The $1.5 billion PIPE financing breaks down into $400 million in common equity, up to $750 million in convertible notes, and up to $350 million in preferred stock. Cantor Equity Partners may contribute up to $200 million from its trust, depending on shareholder redemptions during the process.

The merger draws inspiration from successful models like Strategy, which has amassed a substantial Bitcoin reserve and influenced other firms to follow suit, such as BitMine. Wall Street interest in Bitcoin treasury strategies has increased as companies seek to hedge against inflation and capitalize on Bitcoin's long-term value proposition. BSTR intends to focus on maximizing Bitcoin ownership per share while developing Bitcoin-native capital markets products and advisory services.

The announcement also arrives amid broader discussions in the crypto community surrounding Adam Back. Recent document releases related to Jeffrey Epstein have surfaced questions about early investments in Bitcoin-related projects, including Blockstream, where Adam Back serves as a co-founder and executive. These historical ties have drawn scrutiny and commentary from the wider community, with Back drawing backlash with his associations with Epstein.

Overall, the formation of BSTR represents a significant step in blending traditional finance with Bitcoin's principles. With substantial initial holdings and robust financing lined up, the company positions itself to contribute to the ongoing evolution of corporate Bitcoin strategies.