Cantor Equity Partners I (CEPO) is changing hands just shy of $15 in morning U.S. action, up about 25% from the $12 level it traded at prior to a late-Tuesday story from the FT that the company and Adam Back were nearing a $3.5 billion funding deal.

To review, CEPO is the blank check bitcoin treasury company headed by Brandon Lutnick — chairman of Wall Street investment bank Cantor Fitzgerald and son of Trump administration Commerce Secretary Howard Lutnick.

According to the FT report, Cantor Equity Partners 1 would acquire 30,000 BTC (nearly $3.5 billion at current prices) from Back. In return, Back would receive equity in the vehicle, which would be renamed BSTR Holdings. CEPO is also seeking to raise another $800 million of additional capital to acquire even more BTC, the report said.

Back cashing out?

Cynics might believe that the move signals a desire by Back — one of Bitcoin’s OGs whose cryptography work was used by the network’s creator Satoshi Nakamoto — to cash in on some of his vast BTC holdings.

This couldn’t be further from the truth, according to CoinDesk Senior Analyst James Van Straten.

«Far from being a mere liquidity event for Back, this partnership underscores his long-term conviction that Bitcoin should become a core asset class in traditional finance portfolios,» said Van Straten. «Rather than cashing out, Back seems intent on leveraging institutional vehicles to push Bitcoin further into the financial mainstream, bridging the gap between btc-native innovation and Wall Street capital.»

Van Straten further noted that Back has invested his own cash in the funding of other bitcoin treasury strategy companies. «This deal reinforces the notion that Back’s priorities lie in expanding Bitcoin’s institutional use cases, not simply realizing gains on his holdings,» he concluded.

Bitmine Immersion Technologies (BMNR), the ether treasury strategy firm helmed by Fundstrat’s Thomas Lee, is rebounding on Wednesday on news that prominent tech investor Peter Thiel invested in the company.

According to a Tuesday filing to the U.S. Securities and Exchange Commission (SEC), Thiel purchased 9.1% of the firm’s common shares through various investment funds.

BMNR shares were up 25% approaching the noon hour in the U.S., changing hands at around $48. It was a $4 stock prior to the ether pivot announced last last month.

Excitement continues to grow around the growing trend of corporate ETH acquisition strategies, and it’s giving a boost to ETH itself, which is up another 9% today and 23% over the past week. That compares to bitcoin’s more modest 9.6% advance over the past seven days.

Other ETH treasury firms also surged during Wednesday’s session. Sharplink Gaming (SBET) was up 17%, while BTCS was 25% higher as it was added to the Russel Microcap index.

Read more: Altcoins Outperform as Rally Gains Steam: Crypto Daybook Americas

Disclaimer: The analyst who wrote this article owns shares in Strategy.

Jim Chanos, the founder of Kynikos Associates who famously shorted U.S. energy giant Enron before it collapsed in 2001, has set his sights on Strategy (MSTR), arguing the bitcoin (BTC)-buying company’s premium valuation over its holdings of the largest cryptocurrency is unjustified.

Chanos has placed a bet against Strategy’s stock by shorting it while maintaining a long position in bitcoin itself, aiming to profit if the company’s premium valuation shrinks. In shorting, a trader borrows stock, sells it and hopes the price falls enough for them to buy it back in time to return to the lender while leaving them with a profit.

The investor has earned a reputation for spotting corporate frauds and overvalued companies. Enron, once a major U.S. energy firm, collapsed amid massive accounting fraud, wiping out billions in value and sending top executives to prison, becoming a lasting symbol of corporate scandal.

He criticized the financial maneuvers of Strategy Executive Chairman Michael Saylor, who has sold convertible debt and preferred shares to raise money to buy more bitcoin, calling them “financial gibberish” and warning that the sales create risks for shareholders. Strategy has accumulated more than 600,000 bitcoins, far surpassing its closest competitors.

In a debate on the We Study Billionaires podcast, Chanos clashed with Pierre Rochard, CEO of Bitcoin Bond Co. and a well-known bitcoin advocate, over Strategy’s roughly 1.9 times net asset value premium.

According to Chanos, the company offers nothing unique beyond owning bitcoin, and contends the premium should disappear as more than 140 other firms worldwide, including MARA Holdings (MARA), Riot Platforms (RIOT) and Metaplanet (3350), pursue similar treasury strategies.

Rochard, however, sees Strategy’s large bitcoin stash and first-mover advantage as key strengths. He argued the company can raise significant debt without diluting shareholders and that investors view Strategy as a leveraged play on BTC, akin to holding a call option for potential upside. Rochard also suggest that crypto-friendly policies under the administration of President Trump could attract more investment into the industry, boosting Strategy’s appeal.

While Chanos insisted direct bitcoin ownership is safer and simpler, Rochard countered that Strategy’s size enables it to leverage more efficiently than individual investors.