- Cantor’s CEPO and Adam Back’s BSTR will renegotiate their bitcoin merger terms.
- The July 10 shareholder vote was postponed with no new date set.
- The original deal targeted a treasury of more than 50,000 bitcoins.
The crypto market is watching a major reset in the corporate Bitcoin treasury sector after Cantor Equity Partners I (CEPO) and Bitcoin Standard Treasury Company (BSTR), led by Adam Back, paused their planned merger and began renegotiating the terms of one of the industry’s largest planned Bitcoin accumulation deals.
Original Deal Terms Scrapped, Vote Postponed
According to a joint statement, the companies will not proceed under their initial July 16, 2025, business combination agreement because the structure no longer aligns with current market conditions.
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The original 2025 deal planned to merge Adam Back’s BSTR with a Cantor Fitzgerald-backed blank-check company.
BSTR was set to go public with a massive stash of over 30,000 bitcoin—valued at more than $3 billion—backed by $1.5 billion in private funding, with a goal to eventually hold over 50,000 BTC.
While regulators approved the initial paperwork in June 2026, the investor vote was delayed twice before the entire deal was put on pause to rethink the terms.
The pending private placements (PIPE investments) tied to the original deal have been cancelled and will not be required to close.
The extraordinary general meeting originally scheduled for July 10, 2026, has been called off.
Parties Are Not Walking Away
Instead of walking away completely, both parties are actively discussing a revised transaction structure and amended terms.
Adam Back confirmed on X that BSTR and CEPO are working together on a revised structure and amended terms aimed at better capitalizing on current market conditions.
Neither CEPO nor BSTR has disclosed details of the revised deal, and any new terms will require updated SEC filings.
Bitcoin Treasury Model Under Pressure
The delay comes amid a broader slowdown in the Bitcoin treasury sector as Bitcoin treasury companies face tougher market conditions. Concerns remain around valuations, financing costs, and Bitcoin volatility.
By late 2025, more treasury companies were trading below the value of their bitcoin holdings — a gap measured by mNAV, or market value relative to the value of their bitcoin holdings.
The strategy depends on investors valuing these companies at a premium to their bitcoin holdings, allowing them to issue shares and raise capital to purchase more bitcoin. But when shares trade at a discount, existing investors lose value instead.
The issue is central to the Bitcoin treasury model because these companies rely on investor demand for their shares to raise capital and buy more bitcoin.
Strategy Inc. (MSTR), the model’s pioneer, has also traded below the value of its bitcoin holdings, while smaller peers have faced even deeper discounts.
Why This Matters
The renegotiation suggests investors are becoming more selective about Bitcoin treasury companies, demanding stronger deal structures and clearer paths to shareholder returns.
The outcome of the CEPO-BSTR transaction could become a test case for whether the corporate Bitcoin treasury model can adapt to a more skeptical market.
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