Anthony Pompliano announced a $1 billion merger creating ProCap Monetary by means of a Particular Function Acquisition Firm (SPAC) transaction with Columbus Circle Capital Corp. (CCCM). The deal represents the biggest preliminary fundraise in historical past for a public Bitcoin treasury firm, elevating $516.5 million in fairness and $235 million in convertible notes.
ProCap Monetary will function with as much as $1 billion in Bitcoin on its steadiness sheet as soon as the transaction closes. The corporate plans to generate income by means of numerous Bitcoin targeted monetary methods concentrating on institutional purchasers.
“The legacy monetary system is being disrupted by Bitcoin,” stated Pompliano. “ProCap Monetary represents our resolution to the rising demand for Bitcoin-native monetary providers amongst subtle traders. Our goal is to develop a platform that won’t solely purchase Bitcoin for our steadiness sheet, however can even implement risk-mitigated options to generate income and earnings from our Bitcoin holdings.”
The transaction construction gives fast Bitcoin publicity to traders corresponding to Magnetar Capital, Woodline Companions LP, Anson Funds, and Blockchain.com.
ProCap stated it’ll buy Bitcoin inside fifteen days of signing definitive agreements, with belongings held in custody till closing. The convertible notes carry a 130% conversion charge, zero rate of interest, and as much as 36-month maturity, collateralized at 2x by money or Bitcoin.
The events count on to finish the transaction by the tip of 2025, pending SEC approval and customary closing situations. The deal requires approval from CCCM shareholders and regulatory evaluate by means of an S-4 registration assertion.
Gary Quin, CEO of CCCM, said: “From day one we sought to companion with a platform and a frontrunner that might develop a transformative group – and we discovered that in ProCap BTC and Anthony Pompliano. Anthony’s observe file as an progressive investor, operator, and early advocate within the bitcoin ecosystem speaks for itself. We imagine his deep experience and relentless conviction will assist proceed to remodel an trade present process fast evolution.”
Through the years, Pompliano has constantly promoted Bitcoin’s role as a store of value, stating in a latest interview that “individuals are saving and holding the factor that’s going to understand in worth which is Bitcoin.” He argues that individuals spend stablecoins as a result of they count on them to be much less useful sooner or later, whereas they save Bitcoin as a result of it’ll recognize over time.
This institutional backing aligns together with his earlier market predictions, together with his September 2023 forecast of an impending Bitcoin bull run pushed by rising institutional adoption and potential ETF approvals. These predictions proved prescient as Bitcoin skilled vital value appreciation and elevated curiosity.