BSTR Scraps US Listing Plan via SPAC Merger, Citing Market Weakness
Summary
- BSTR said it withdrew its US listing plan through a SPAC merger because of market weakness.
- The company said downward price pressure on Bitcoin and publicly traded Bitcoin treasury companies was behind the decision.
- BSTR said market conditions made it difficult to use key fundraising tools such as convertible bonds and perpetual preferred shares efficiently.
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BSTR said Aug. 21 that it had mutually agreed to terminate its merger agreement with Cantor Equity Partners I, a special purpose acquisition company, or SPAC.
The company had planned to list on a US exchange through the merger with Cantor Equity Partners. It withdrew the plan as market conditions worsened, with Bitcoin and publicly traded Bitcoin treasury companies coming under downward price pressure.
BSTR said current market conditions had distorted pricing in capital markets, making it difficult to efficiently use key fundraising tools such as convertible bonds and perpetual preferred shares.
Chief Executive Officer Adam Back said CEPO and Cantor had been excellent partners and had made the decision together. He said demand to generate returns using Bitcoin remained substantial despite current market conditions.
Uk Jin
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