BSTR Includes Convertible Preferred Financing in Bitcoin Treasury SPAC Structure
BSTR secured commitments for $300 million in convertible preferred stock to support additional Bitcoin purchases once the company goes public.
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Bitcoin Standard Treasury Company (BSTR) plans to use a convertible preferred stock instrument as part of its financing strategy to raise capital for additional Bitcoin purchases as the company prepares to go public through a merger with Cantor Equity Partners I, Inc. (Nasdaq: CEPO).
Details of the financing structure are outlined in the company’s investor presentation related to the proposed SPAC transaction.
According to the filing, BSTR is expected to launch with 30,021 Bitcoin on its balance sheet, which would place it among the largest corporate Bitcoin treasuries at the time of listing.
The initial holdings would include 25,000 Bitcoin contributed by founding shareholders and 5,021 Bitcoin contributed by early Bitcoin investors and companies through an in-kind private investment in public equity (PIPE).
Preferred Stock Financing
In addition to Bitcoin contributions, BSTR structured several fiat-denominated financing instruments intended to fund further Bitcoin acquisitions.
Among them is $300 million in convertible preferred stock that was raised through a private placement.
The preferred shares would carry a 7% dividend and an initial conversion price equivalent to $13 per share of common stock, according to the filing.
Investors would have the option to convert the preferred shares into common equity under those terms.
The preferred stock is expected to be issued at $85 per share, reflecting an original issue discount that results in approximately $255 million in net proceeds on $300 million of par value.
The preferred stock is part of a broader financing package connected to the SPAC merger totaling approximately $1.5 billion in fiat funding. The structure includes:
- $300 million in convertible preferred stock (approximately $255 million net after OID).
- ~$575 million in convertible senior notes.
- $400 million in common equity commitments.
- Approximately $207.5 million from the CEPO SPAC trust, subject to shareholder redemptions.
The company stated that proceeds from the financing will primarily be used to acquire additional Bitcoin and support the development of Bitcoin-focused financial services.
Convertible preferred stock has recently been used by other Bitcoin treasury companies to fund Bitcoin purchases.
Strategy’s STRC preferred shares have been used to raise capital for additional Bitcoin acquisitions, providing a comparable example of how preferred equity can be used to finance treasury expansion.
Adam Back Comments on the Preferred Instrument
BSTR Founder and CEO Adam Back referenced the preferred stock structure in a post on X while discussing the company’s financing.
(typo/correction) if you look at the SEC filing from the SPAC raise, $BSTR does have a STRK like instrument (convertible pref). $BSTR is awaiting de-SPAC approval. first US treasury co to do a pref at SPAC raise time AFAIK. pic.twitter.com/DZeVIC194s
— Adam Back (@adam3us) March 14, 2026
Planned Public Listing
BSTR and Cantor Equity Partners I announced the proposed business combination in July 2025.
The transaction remains subject to regulatory review, shareholder approval, and other customary closing conditions.
As of March 2026, the company is awaiting completion of the de-SPAC process, after which the combined entity is expected to trade publicly under the ticker BSTR.