Bitcoin Standard Treasury Prepares to Go Public with $1.5B Financing
Bitcoin Standard Treasury Co. (BSTR), led by Adam Back, aims to enhance real-world bitcoin adoption while planning to become a major corporate bitcoin holder.
BSTR is preparing for a public listing on Nasdaq through a merger with Cantor Equity Partners (CEPO). Key points include:
- BSTR currently holds 30,021 BTC and targets over 50,000 BTC.
- This positioning may allow BSTR to surpass MARA Holdings, which holds 50,600 BTC, making it the second-largest corporate BTC holder after Strategy.
- MSTR, MARA, and BSTR together hold approximately 710,000 BTC, equating to 3.38% of bitcoin's total supply.
BSTR's strategy involves:
- Active accumulation techniques, including selling puts and using bitcoin-backed revolvers.
- A focus on liquidity, security, and scale without engaging in high-risk DeFi activities.
The merger includes:
- 25,000 BTC from founders and an additional 5,021 BTC raised from the bitcoin community.
- Up to $1.5 billion in fiat financing, marking the largest PIPE associated with a bitcoin treasury SPAC merger.
- $400 million in common equity at $10 per share.
- Up to $750 million in convertible senior notes and $350 million in convertible preferred stock.
Innovatively, BSTR introduces an in-kind PIPE allowing investors to contribute BTC at closing, appealing to both crypto-centric and traditional investors.
The leadership envisions BSTR as a bridge between the bitcoin ecosystem and institutional capital markets, with plans to close the deal in Q4 under the ticker BSTO. If successful, this could set a new benchmark for corporate bitcoin treasuries.