Adam Back’s $2.1B Bitcoin Treasury Set to Challenge MARA in Corporate BTC Battle

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Adam Back’s $2.1B <a href="https://jpyxx.com/btc-usd/">Bitcoin</a> Treasury Play Set to Challenge MARA in <a href="https://bbg-news.com/btc-usd/">BTC</a> Holdings

What to know:

  • Founders are contributing 25,000 BTC, plus 5,021 BTC from early investors, with up to $1.5 billion in new capital.
  • The company plans for active treasury management and rapid expansion beyond 50,000 BTC to challenge MARA Holdings’ hoard.

In this article

BTCBTC$117,871.03◢0.45%

Bitcoin Standard Treasury Co. (BSTR), a bitcoin

treasury vehicle led by cryptography pioneer Adam Back, sees itself as a company with a mission to accelerate real-world bitcoin adoption.

Moving forward, there’s a good chance we could reach another significant achievement – amassing substantial Bitcoin holdings among major corporations.

The business intends to make its debut on Nasdaq through a merger with Cantor Equity Partners (CEPO), and currently holds approximately 30,021 Bitcoins in its assets. Their aim is to expand this amount, aiming to accumulate more than 50,000 coins.

As an analyst, I’m projecting a significant shift in the Bitcoin landscape, potentially placing us ahead of MARA Holdings as the second-largest corporate Bitcoin holders, should our current trajectory continue. Currently, MARA boasts over 50,600 BTC, while Strategy leads with approximately 629,000.

At present, a combined total of approximately 710,000 bitcoins is held by entities MSTR, MARA, and BSTR. This amount corresponds to roughly 3.38% of the total predetermined bitcoin supply of 21 million.

‘Liquidity, security, and scale’

Instead of merely holding Bitcoin like certain corporate treasuries do, BSTR plans to employ strategies such as selling put options to acquire Bitcoin at reduced prices, utilizing Bitcoin-secured revolving loans, and depositing collateral with trusted third-party regulators who act as custodians for these assets.

In a private conversation with CoinDesk, Back stated, “We’re not looking to chase yield from DeFi or take on risks we can’t handle. Our focus is on liquidity, safety, and expanding capabilities.” He went on to explain that just as Bitcoin was designed to be reliable money, BSTR aims to bring the same level of integrity to today’s financial markets.

In simpler terms, the agreement between SPAC (Special Purpose Acquisition Company) and Cantor involves a unique merger – it’s the initial fusion of conventional funding methods from Wall Street with a private offering of shares that are valued in Bitcoin.

As a researcher delving into the intricacies of cryptocurrency, I’d like to highlight an interesting aspect: Beyond the initial 25,000 BTC donated by the company’s founders, another 5,021 BTC is anticipated to be sourced from the vast and supportive Bitcoin community.

The business is additionally securing up to $1.5 billion through conventional funding (fiat financing), marking the biggest PIPE ever declared in conjunction with a Special Purpose Acquisition Company (SPAC) merger involving Bitcoin reserves.

  • $400 million in common equity at $10 per share.
  • Up to $750 million in convertible senior notes (30% conversion premium, $13 per share).
  • Up to $350 million in convertible preferred stock with a 7% dividend and a $13 per share equivalent conversion price.

CEPO could add up to $200 million from its trust, subject to redemptions.

On the first day, we’ve managed to acquire funding in traditional currencies (fiat) as well as bitcoins. This means we have an extraordinary amount of resources at our disposal. Our aim is twofold: increasing the number of shares owned by each person in Bitcoin, and promoting the use of Bitcoin in everyday life,” said Back.

A first for bitcoin treasuries

A type of investment vehicle known as In-Kind PIPE enables investors to provide Bitcoin during the closing process, which could enable them to seize any potential gains prior to final settlement. According to Back, this strategy was created to attract both crypto specialists and traditional fund managers who are interested in gaining exposure without having to wait for after-closing market purchases.

Sean Bill, the CIO of the firm who was instrumental in assisting a U.S. pension fund to make one of the early institutional investments in Bitcoin, noted that this approach struck a chord with traditional investors. He further expressed that their goal is to establish a Bitcoin equivalent of Berkshire Hathaway (BRK), which will encompass an actively managed portfolio focused on generating both yield and alpha, as well as strategic acquisitions within the Bitcoin ecosystem.

Bill shared with CoinDesk that our approach is turning traditional finance on its head by integrating Bitcoin into the world of Finance and Capital Markets. Unlike other treasury firms, we aren’t seeking conventional currency to buy Bitcoin; instead, we’re leading the way with a pledge of 25,000 Bitcoins and even more notably, we pioneered the first ever Bitcoin-for-Equity deal in the U.S., raising an additional 5,021 Bitcoins from early Bitcoin enthusiasts. Essentially, we’re bringing Bitcoin to Wall Street. Our belief is that the future of finance will be powered by Bitcoin.

Bridging bitcoin and Wall Street

The leadership believes that BSTR serves as a connection point linking the Bitcoin community with traditional investment markets for institutions.

Back stated that by attracting both traditional traders and Bitcoin enthusiasts to Wall Street, we can leverage the immense liquidity of the US market. This could significantly boost the performance of Bitcoin-based securities, which have already shown promise in European markets.

Anticipated closure of the deal is slated for the last quarter. The company will be listed under the reserved ticker BSTO once it’s complete. If the offering is fully subscribed, it may establish a new benchmark for corporate bitcoin reserves in terms of scale and could serve as a model for others aiming to blend traditional money principles with contemporary financial tools.

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2025-08-16 18:50