Cantor Fitzgerald and Blockstream Plan to Create $3 Billion Bitcoin Reserve

A deal worth 30,000 BTC

Initial reports suggest that the deal involves Cantor Equity Partners 1, a special purpose acquisition company (SPAC) led by Lutnick, which will purchase approximately 30,000 BTC from Blockstream Capital, the trading arm of Blockstream founded by Adam Back.

The value of the 30,000 BTC could exceed $3.48 billion, depending on market movements, as Bitcoin's price currently hovers around $116,000. Back and Blockstream's stake in the new entity will be given to them to be renamed BSTR Holdings.

Cantor is also reportedly planning to expand the deal by raising about $800 million from outside investors, which would push the total value of the deal above $4 billion. After his father, Howard Lutnick, became US Commerce Secretary under the Trump administration, Brandon Lutnick, 27, took over as Cantor Fitzgerald’s chairman in February, bringing a youthful and bold style to the bank.

The previous deal with SoftBank and Tether worth $3.6 billion in April was the result of the creation of Twenty One Capital, another Bitcoin treasury firm. If successful, Cantor could become one of the world's largest Bitcoin holders by 2025, when its total assets hit $10 billion.

Adam Back—The Architect Behind the Deal

Adam Back is one of the earliest Bitcoin pioneers and is best known for inventing Hashcash, the proof-of-work mechanism that Satoshi Nakamoto cited in the 2008 Bitcoin whitepaper. Back has been a theorist and practitioner at Blockstream since 2014. He recently invested in The Blockchain Group (France) and H100 Group (Sweden), two European Bitcoin treasury companies.

His willingness to contribute 30,000 BTC to the deal is not only a financial gesture but also a demonstration of his belief in the importance of Bitcoin as a long- term strategic asset . In addition, the deal is part of an increasingly clear trend: crypto founders are partnering with traditional financial institutions to help Bitcoin become a mainstream financial instrument. Major investment funds like Khosla Ventures and Baillie Gifford have backed Blockstream, which not only offers Bitcoin but also cutting-edge blockchain technology, which could help Cantor build an efficient treasury platform.

Market fluctuations

The deal comes during “Crypto Week” in the US Congress, where Republican lawmakers are pushing crypto-friendly bills that capitalize on President Donald Trump’s open-door policies. Trump’s support for crypto, along with Howard Lutnick’s role in the administration, may have been a big driver behind Cantor’s bold move.

This not only increased the value of Bitcoin in the market but also encouraged other companies, like Michael Saylor's MicroStrategy, to continue accumulating BTC. In terms of the market, this news created a wave of optimism.

Bitcoin, which hit a high of $120,000 two days ago, could get a further boost if the deal closes this week. However, volatility remains a concern: if BTC prices fall sharply, the real value of the 30,000 BTC may not meet expectations, affecting the deal structure.

Evaluation and Conclusion

The potential Cantor Fitzgerald-Blockstream deal is a milestone, not just in terms of scale but also in terms of strategic significance. Combining Lutnick’s financial experience with Back’s crypto vision could be a game-changer in bringing Bitcoin into the global financial mainstream. But in a volatile market and regulatory environment, the success of the deal depends on the ability to balance risk and opportunity. Is this the beginning of a new era where Wall Street banks become “Bitcoin banks,” or is it just a risky leap forward? With an announcement likely to take place in the next few days, both the market and the crypto community are holding their breath waiting for the answer. One thing is certain: the deal has breathed new life into the digital financial space, and its impact will be felt for a long time.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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