Home Blog Page 945

Adam Back’s SPAC merger with Cantor Equity Partners could come as soon as April

0

Undaunted by the plunge in bitcoin and the even worse price action for bitcoin treasury companies, Adam Back, the CEO of Bitcoin Standard Treasury Company (BSTR), says shareholder approval for a public listing could come as soon as April.

The public listing would come via a SPAC merger with Brandon Lutnick’s Cantor Equity Partners I (CEPO).

BSTR intends to debut with 30,000 bitcoin on its balance sheet. Of that total, 25,000 coins will be contributed by Back and other founding shareholders. A further 5,000 BTC will be contributed in-kind by early investors.

The merger plans were announced in the summer of 2025 amid a frenzy of hastily formed crypto treasury companies that hoped to mimic the success of Michael Saylor’s Strategy.

Since, though, the price of bitcoin has crashed to $63,000, and the performance of crypto treasury companies has been far worse, with many prominent ones vaporizing 90% or more of investor capital.

Speaking with CNBC on Monday, Back said a weaker bitcoin price could benefit BSTR ahead of its listing. Launching at a lower reference price would enable the company to accumulate more bitcoin at discounted levels, potentially strengthening its balance sheet and increasing long-term upside if market conditions improve.

Addressing bitcoin’s recent decline, Back noted that it occurred despite what he characterized as a favorable regulatory backdrop in the United States. He attributed the pullback to broader macroeconomic factors, including geopolitical tensions and tariff-related uncertainty, which have weighed on risk assets more broadly.

Back added that bitcoin treasury companies play a supportive role in the market. Their core strategy centers on acquiring and holding bitcoin, though he acknowledged that the pace of accumulation typically slows during bear markets. Ultimately, he said, bitcoin treasury companies are taking bitcoin off the market, which is a long-term bullish catalyst.

Ethereum Foundation Starts Staking ETH, Spotlights Client Diversity

0

The Ethereum Foundation has begun staking part of its treasury, turning one of Ethereum’s most influential entities into a direct economic participant in network consensus.

According to a Tuesday post on X, the foundation deposited 2,016 Ether (ETH) and plans to stake about 70,000 in total, with all rewards flowing back into its treasury to fund protocol research and development, ecosystem development and grants.

​In its announcement, the foundation stressed that new validators were being operated using open-source infrastructure, Dirk and Vouch, originally developed by Attestant and now part of Bitwise’s institutional staking stack. 

Dirk acts as a distributed signer, while Vouch serves as a validator client, allowing keys and operations to be split across multiple jurisdictions and operators rather than concentrated in a single machine or provider. 

The Ethereum Foundation has started staking its ETH. Source: Ethereum Foundation

Chris Berry, head of Ethereum onchain engineering at Bitwise Onchain Solutions, told Cointelegraph that Vouch and Dirk were “built with the mindset to fulfill the duties of an honest validator in the safest way possible,” with an emphasis on client diversity, non-custodial control and compliance.

Avoiding single points of failure

According to the foundation, this setup was designed to avoid a “single point of failure” and to reflect best practices for secure, non-custodial staking.

Crucially, the Ethereum Foundation says its configuration “employs minority clients” alongside a mix of hosted infrastructure and self-managed hardware in several jurisdictions. 

Related: Vitalik sells 17K ETH in one month after earmarking $45M to privacy

For Berry, those properties “really align with the core values of Ethereum,” and the EF’s adoption shows that the team is “confident in the implementation and stewardship of the software.”

The choice is also significant in the context of long-running concerns that Ethereum’s client ecosystem and validator set could become overly dependent on a handful of dominant implementations and centralized cloud providers. 

By explicitly opting for a minority client-heavy stack, the foundation appears to be using its own staking footprint to model what it wants large institutional validators to do.

Ethereum staking concentration concerns  

The move comes as Ethereum staking continues to grow and professionalize. Around 30% of the ETH supply is now staked, with liquid staking protocols and large custodians, such as Lido and Coinbase, still controlling a sizable share of validators and effective voting power. 

This has raised recurring questions about how much decentralization Ethereum can retain as more capital flows into highly optimized, institution-run staking operations.

Berry stressed that Ethereum had “always prioritized decentralization and security” at a protocol level, and that there were “many mechanisms” to ensure that Ethereum would “remain secure if large amounts of stake want to leave or do not perform their duties appropriately.”

He added that institutional staking was “very competitive,” and that allocators were increasingly focused on properties such as client diversity, infrastructure resilience and validator performance.

Magazine: Ethereum’s Fusaka fork explained for dummies — What the hell is PeerDAS?