Bitcoin Standard Treasury Co. (BSTR), Bitcoin
But it may be embarking on another milestone: it will become one of the biggest corporate Bitcoin holders.
The company, which is preparing to merge with Cantor Equity Partners (CEPO) to reveal Nasdaq, plans to grow stacks of over 50,000 coins, already has 30,021 BTC on its balance sheet.
This has turned its back on strategy as BTC’s second largest corporate holder, as it could overtake Mara Holdings (Mara). According to bitcointreasuries.net, Mara has over 50,600 BTC. The strategy is less than 629,000.
Currently, MSTR, MARA and BSTR collectively hold about 710,000 Bitcoins, which amounts to around 3.38% of the fixed supply of Bitcoin to 21 million people.
“Liquidity, Security and Scale”
Unlike the Treasury Department of several companies that sit passively on Bitcoin, BSTR is intended to use technology that involves using sales puts to accumulate BTC at a low price, using revolvers for Bitcoin, and using collateral with regulated tri-party custodians.
“We are not interested in chasing Defi’s yields or taking on the risks of counterparties that we can’t manage. This is about liquidity, security and scale.” “Bitcoin is created as sound money, and BSTR is created to bring the same integrity to the modern capital market.”
SPAC has signed a deal with Cantor, for the first time it has been traditional Wall Street funding and Bitcoin religiously employing equity equity (PIPE).
In addition to the 25,000 BTC contributed by the company’s founders, an additional 5,021 BTC will be raised from the Bitcoin community.
The company also raises up to $1.5 billion in FIAT finance. This is the largest pipe announced along with the Bitcoin Treasury space merger.
- $400 million in common stock at $10 per share.
- Up to $750 million (30% conversion premium, $13 per share) in Convertible Senior Notes.
- The convertible preferred stock, up to $350 million, has a 7% dividend and an equivalent conversion price of $13 per share.
CEPOs could range from up to $200 million from trust eligible for redemption.
“By securing both Fiat and Bitcoin funding on the first day, we have an unprecedented firepower behind a single mission. We will maximize Bitcoin ownership per share while accelerating the adoption of actual Bitcoin,” Buck said.
Bitcoin’s Treasury First
The physical pipe allows investors to provide BTC upon closing and earn potential rises before settlement. Buck said the approach is designed to appeal to both crypto-born players and traditional managers who are looking for exposure without waiting for market purchases after closing.
The company’s CIO Sean Bill, who previously helped US pension funds make their first institutional allocation to BTC, said the strategy resonated with traditional investors. “Build Bitcoin Berkshire Hathaway (BRK), an aggressively managed treasury pursuit of Bitcoin’s strategy and strategic acquisition within the Bitcoin ecosystem.”
“I flip through the scripts on Wall Street as I’m trying to fuse Bitcoin with finance and capital markets. Unlike other finance companies, Wall Street, which doesn’t want Fiat currency to buy Bitcoin, is looking for a 25,000 Bitcoin commitment. Bill’s future will be carried out with Bitcoin,” Bill told Coindesk exclusively.
Bitcoin and Wall Street Bridge
The leadership team views BSTR as a bridge between Bitcoin ecosystems and the institutional capital markets.
“We’re bringing traders in and bringing Bitcoiner to Wall Street,” Buck said, noting that Bitcoin, which already gains traction in Europe, could amplify the success of religious convertibles.
The transaction is expected to close in the fourth quarter and the company is trading under booked ticker BSTO. If the pay raise is fully subscribed, the launch could set a new scale record for the company Bitcoin Treasury and provide templates for others who are trying to fuse sound money with modern market instruments.
