The companies stated that they will not proceed under the merger agreement signed last year. Instead, the parties intend to agree to new terms that better reflect current market conditions.
Cantor Equity Partners I Inc., backed by Cantor Fitzgerald, and Adam Back's Bitcoin investment firm BSTR Holdings announced on Wednesday that they have abandoned the original terms of their planned merger and intend to negotiate a revised deal.
Financial details of the revised deal were not disclosed, nor was the timing of the new agreement specified.
The companies have abandoned the private financing associated with the original merger and indefinitely postponed their shareholder meeting, which was scheduled for July 10. Furthermore, the SPAC investors' share buyback applications submitted were canceled, and the relevant securities were returned to shareholders. The parties stated that, if an agreement is reached, details of the revised deal will be disclosed in future regulatory filings.
The merger was intended to take BSTR public through Cantor, a special-purpose acquisition company (SPAC). Back, Blockstream CEO and one of Bitcoin's early developers, planned to use BSTR to raise capital to purchase and hold Bitcoin.
Bloomberg News previously reported that Cantor allowed several investors in the private financing of the deal to reduce their commitments ahead of a planned shareholder vote after the transaction encountered funding difficulties.