The merger that was supposed to create one of the largest publicly traded Bitcoin treasury companies just hit a wall. BSTR Holdings, the company led by Blockstream CEO Adam Back, and Cantor Equity Partners I (CEPO) have scrapped the original terms of their de-SPAC deal and postponed the shareholder vote indefinitely.

The announcement came on July 8, 2026, after the vote had already been pushed back twice, from its original June 26 date to July 2, and then into the void.

What happened to the deal

BSTR and Cantor Fitzgerald’s SPAC vehicle first announced their business combination agreement back in July 2025. The plan was ambitious: take BSTR public and build it into a major institutional Bitcoin holder with more than 30,000 BTC in its treasury.

That target of 30,021 BTC was supposed to come from two sources. Founders would contribute 25,000 BTC, while another 5,021 BTC would flow in through in-kind PIPE (Private Investment in Public Equity) financing. The whole thing was designed to position BSTR as a serious competitor in the public Bitcoin treasury space, with valuation estimates ranging from $1.5 billion to $4 billion.

The PIPE financing component is now gone entirely. BSTR announced on July 8 that the original merger terms were being abandoned and that the previously planned PIPE was no longer required. The stated reason is “evolving market conditions.”

Why the PIPE mattered

Removing the PIPE eliminates a potential source of shareholder dilution, which had been a concern flagged during previous delays. The downside is that BSTR now needs to find alternative ways to fund its Bitcoin treasury ambitions.

CEPO shares have remained relatively stable through all of this, trading at approximately $10.50.

The bigger picture for Bitcoin treasury companies

BSTR’s pitch was differentiated by Adam Back’s credibility. Back is one of the most respected cryptographers in Bitcoin’s history, credited with developing Hashcash, a proof-of-work system that directly influenced Bitcoin’s design.

What investors should watch

The indefinite postponement creates a limbo period. Eliminating the PIPE removes a dilution overhang that was clearly creating friction.

SPAC vehicles have finite lifespans, and extended delays can erode both investor confidence and the trust account that backs the shares. The longer this takes, the more likely it is that CEPO shareholders start requesting redemptions, which would shrink the capital available for any eventual combination.

The key question is whether BSTR can secure its target Bitcoin treasury without the PIPE financing. A 30,000 BTC position at current prices represents a multi-billion dollar commitment. Finding alternative funding will define the next chapter of this saga.

Investors holding CEPO shares near $10.50 have limited downside thanks to the SPAC’s trust structure, but their upside depends entirely on whether a revised deal materializes and what it looks like.