Anthony Pompliano introduced a $1 billion merger creating ProCap Monetary by a Particular Goal 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 stability sheet as soon as the transaction closes. The corporate plans to generate income by varied Bitcoin centered monetary methods concentrating on institutional shoppers.
“The legacy monetary system is being disrupted by Bitcoin,” mentioned Pompliano. “ProCap Monetary represents our answer to the rising demand for Bitcoin-native monetary companies amongst subtle buyers. Our goal is to develop a platform that won’t solely purchase Bitcoin for our stability sheet, however can even implement risk-mitigated options to generate income and earnings from our Bitcoin holdings.”
The transaction construction offers instant Bitcoin publicity to buyers resembling Magnetar Capital, Woodline Companions LP, Anson Funds, and Blockchain.com.
ProCap mentioned it is going to buy Bitcoin inside fifteen days of signing definitive agreements, with property held in custody till closing. The convertible notes carry a 130% conversion fee, 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 top of 2025, pending SEC approval and commonplace closing circumstances. The deal requires approval from CCCM shareholders and regulatory evaluate by an S-4 registration assertion.
Gary Quin, CEO of CCCM, acknowledged: “From day one we sought to associate with a platform and a frontrunner that would develop a transformative group – and we discovered that in ProCap BTC and Anthony Pompliano. Anthony’s monitor 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 business present process speedy evolution.”
Over time, Pompliano has constantly promoted Bitcoin’s function as a retailer of worth, stating in a current 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 priceless sooner or later, whereas they save Bitcoin as a result of it is going to 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.
