In a dramatic pivot reflecting the harsh realities of the current crypto market, Cantor Fitzgerald’s special purpose acquisition company has abandoned the original terms of its planned merger with Adam Back’s Bitcoin treasury firm, BSTR. The deal, once hailed as a landmark move to bring a Bitcoin-focused enterprise to the public markets, is now being renegotiated from scratch, sources confirmed Wednesday.
The blank-check company backed by Wall Street titan Cantor Fitzgerald and Blockstream CEO Adam Back’s investment vehicle had initially agreed to a valuation that now appears unsustainable. With Bitcoin prices languishing below key resistance levels and institutional appetite for crypto-exposed equities waning, both sides have acknowledged the original framework is no longer viable. The collapse of the preliminary terms underscores a broader reckoning for companies built on holding Bitcoin as a primary treasury asset.
Market analysts note that the scrapped terms come amid a punishing environment for SPACs generally, but the blow is particularly acute for crypto-adjacent vehicles. “Investors are fleeing risk assets, and a Bitcoin treasury company is about as high-risk as it gets right now,” said one New York-based M&A specialist. “Cantor and Back are trying to salvage something before the entire SPAC window slams shut.” The renegotiation signals that even well-capitalized sponsors are struggling to find a price point that satisfies both the target’s ambitions and the market’s new skepticism.
For Adam Back, a legendary figure in cryptography and the inventor of Hashcash, the delay is a major setback. His firm had positioned itself as a disciplined Bitcoin treasury operator, akin to MicroStrategy, but with a tech-focused twist. The failure to lock in terms now forces BSTR to either accept a significantly lower valuation or risk losing the SPAC vehicle entirely. Industry insiders say the company is under pressure to demonstrate it can still generate returns beyond simply holding Bitcoin.
As of July 8, 2026, the renegotiation enters its second week with no clear deadline. Cantor Fitzgerald has declined to comment on specific new terms, but sources indicate the revised deal will likely include a lower enterprise value and stricter performance milestones. The outcome will be closely watched by other crypto SPACs waiting on the sidelines, many of which are now scrambling to adjust their own expectations in a market that has turned decisively against them.