CEPO: Waiting To Buy Adam Back's Bitcoin Treasury Company

Brent Hecht
2.04K Followers

Summary

  • Adam Back's company is merging with Cantor Equity Partners I to form a Bitcoin Standard Treasury Company, holding over 30,000 bitcoin and $1.5B in PIPE financing.
  • Bitcoin treasury companies are valued by Market Net Asset Value (mNAV), focusing on the market value of their bitcoin holdings minus debt.
  • We can estimate the new entities market cap if it trades in line with a similar market cap ratio relative to mNav as Strategy.
  • Early investors in CEPO lack clarity into the new entity's path to growing bitcoin per share as well as the shares outstanding in the new entity until the merger completes.

closed golden safe box with golden bit-coin isolated on white background.

Mustapha GUNNOUNI/iStock via Getty Images

Another day, another bitcoin treasury company. Weekly, sometimes daily, it seems another company makes it their strategy to build a bitcoin treasury or convert their balance sheet to holding bitcoin. Cantor Equity Partners II(

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I focus on a variety of stocks but I prefer to write about oil and gas companies for now. I also enjoy studying and writing about where energy and monetary incentives intersect. I have a a bachelors and MBA although that should never replace experience and interest.Thanks for reading my articles!

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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