Farewell MicroStrategy? Canto teams up with Adam Back to usher in the "Institutional Coin Holding 2.0 Era"

Written by: Luke, Mars Finance

For years, when Wall Street talks about "how institutions hold Bitcoin," one name consistently comes up: Michael Saylor and his company MicroStrategy (now renamed to Strategy). By transforming the balance sheet of a software company into a massive Bitcoin purchasing tool, Saylor pioneered the 1.0 era of institutional holding. He is a solitary evangelist, using debt and leverage to prove to the world the corporate "Bitcoin standard" strategy.

However, an era is coming to an end. In July 2025, with the announcement of a $4 billion union between Wall Street financial giant Cantor Fitzgerald and Bitcoin "father" Adam Back, the institutional holding paradigm 2.0 is already knocking at the door.

This is no longer about "a company that holds Bitcoin," but rather about "a company that is born for Bitcoin." Canto's billion-dollar blueprint is not a simple imitation of the seller model, but a complete iteration and transcendence. It signifies that the way institutional capital enters Bitcoin will become more pure, direct, and more "native." A new era led by "Bitcoin-Native Capital Companies" is about to unfold.

Paradigm Revolution: The 2.0 Model "Born for Bitcoin"

The core strategy of Cantor is a carefully designed financial architecture specifically created for holding Bitcoin. Its sub-brand Cantor Equity Partners 1, a clean SPAC (Special Purpose Acquisition Company) cash shell, has become the vehicle for this revolution. It has no historical baggage, no operating business, and its sole mission is to become a publicly traded, pure Bitcoin holding entity.

The most fascinating part of this capital magic lies in the fact that Adam Back and his Blockstream Capital are not simply selling Bitcoin; instead, they are injecting 30,000 Bitcoins as "physical assets" directly into this SPAC in exchange for equity in the newly formed company (which plans to be renamed BSTR Holdings) after the merger. This model of "exchanging coins for shares" completely overturns the traditional purchasing logic of institutions. It heralds a brand new way of capital formation: no longer is it "companies using money to buy coins," but rather "the coins themselves become the capital foundation of the company."

This stands in stark contrast to Saylor's 1.0 model. MicroStrategy is essentially a software company whose Bitcoin strategy is built on top of its existing business. When investors buy its stock (MSTR), they are essentially betting on both the prospects of its software business and the price fluctuations of Bitcoin. This hybrid model, while amplifying returns during a bull market, also brings about valuation confusion and additional operational risks. The market often swings between the confusion of "Is it really a tech company or a Bitcoin fund?"

The BSTR Holdings created by Kanto, along with its other plan to raise $3.9 billion, supported by Tether and SoftBank, completely addresses this challenge. They have only one goal: to maximize the "BTC per share" instead of the traditional "EPS". Their balance sheets will be exceptionally clean, with the vast majority of assets being Bitcoin itself. This "purity" provides institutional investors with an unprecedented clear choice: an investment tool that is more proactive than a spot ETF, capable of leveraging capital markets, yet with less risk than the MicroStrategy model.

When Wall Street machines meet the spirit of Bitcoin

Why is the era of institutional holding 2.0 arriving at this moment? The answer lies in the alliance of two key figures, each representing the two forces necessary for this transformation.

On one side is Howard Lutnick's family, Wall Street's "Phoenix" and a top player in the power game. The legendary experience of rebuilding Cantor Fitzgerald from the ashes of 9/11 shaped Lutnick's resilient style that embraces disruptive technology. Today, as the U.S. Secretary of Commerce, although he has nominally handed over control of the company to his son Brandon Lutnick, his influence is far-reaching. More importantly, the deep symbiotic relationship between Cantor and the stablecoin giant Tether—acting both as its trillion-dollar reserve manager and as a shareholder—provides a continuous stream of financial ammunition and flexibility in the offshore world for this grand Bitcoin acquisition plan. The Lutnick family brings the top capital operation machine on Wall Street and unparalleled political resources, which are the "hardware" for putting grand ideas into practice.

The other party is Adam Back, the embodiment of the purest technology and spirit of Bitcoin. As a cypherpunk cited by Satoshi Nakamoto in the white paper, his name itself serves as a credibility endorsement. To simply understand this transaction as Back’s "cash-out" is extremely shortsighted. It is more akin to a thoughtful "seeding" action. He is leveraging his reputation and the Bitcoin he holds to create a capital entry point for Wall Street that aligns with the spirit of Bitcoin. What he brings is the "software" necessary for this transformation—the legitimacy and technical vision from the Bitcoin core community.

It is precisely this combination of the "Wall Street machine" and the "spirit of Bitcoin" that has given rise to the paradigm of institutional holding 2.0. In the era of Saylor, he had to fight alone, using a software company as a Trojan horse to bring Bitcoin into the city-state of Wall Street. Today, however, the alliance of Lutnick and Beek can directly build a dedicated and magnificent temple for Bitcoin in the central square of the city-state.

Say goodbye to Strategy, embrace the future

The collaboration between Canto and Baker marks a new level of institutional understanding of Bitcoin. Bitcoin is no longer just an alternative asset "adopted" by traditional companies' balance sheets, but can serve as "native capital" for building new types of publicly listed companies.

This transition is significant. Firstly, it provides a clearer and lower-friction investment path for trillions of dollars of institutional capital. Capital with a lower risk appetite, such as pension funds and sovereign wealth funds, will find it easier to embrace this structurally pure and purpose-driven 'Bitcoin-native company' rather than complex hybrid companies.

Secondly, it will give rise to a brand new sector in the capital market. In the future, we might see more similar entities like "BSTR Holdings" emerging, where the competition will not be based on software sales or consulting revenue, but on the efficiency and capability of acquiring and managing Bitcoin. This will create a vibrant secondary market ecosystem centered around Bitcoin.

Ultimately, it will permanently change the narrative of Bitcoin. When the savviest players on Wall Street are no longer content to simply "hold" Bitcoin, but instead begin to build entirely new public companies "based on Bitcoin," the status of Bitcoin as a macroeconomic asset will receive the strongest confirmation.

Michael Saylor, with his dedication and vision, has opened the door for institutional investment in Bitcoin. Now, Cantor and Adam Back are laying down a wider and more direct red carpet behind that door. The lonely exploration of Strategy is over; an era of institutional Bitcoin holdings 2.0, dominated by diversified and specialized "Bitcoin-native companies," has arrived.