Anthony Pompliano Launches ProCap Financial Bitcoin Treasury Company

Anthony Pompliano, a prominent U.S. investor, has announced the establishment of a new Bitcoin treasury company, ProCap Financial. This new entity will be formed through a merger between his private company, ProCap BTC, and Columbus Circle Capital Corp. The merger aims to create a Bitcoin-native financial service with an initial focus on managing up to a $1 billion merger of the digital asset on its balance sheet.

Pompliano revealed that ProCap Financial will be a publicly traded entity on Nasdaq upon the conclusion of the proposed business combination. The current ticker for the firm on the stock exchange is CCCM. The merger is expected to be finalized before the end of 2025, pending approval from the U.S. Securities and Exchange Commission.

Pompliano has successfully raised over $750 million for the initiative, marking the largest initial fundraising for a publicly traded Bitcoin treasury company. The funds were raised through equity and convertible notes. ProCap raised $516.5 million in equity, while ProCap Financial secured commitments for $235 million in convertible notes. The convertible notes have a 130% conversion rate, a zero interest rate, and a maturity of up to 36 months. They will be 2x collateralized by cash, cash equivalents, or a portion of the BTC purchased with the proceeds from the merger. U.S. Bank National Trust will serve as the collateral agent and trustee for the convertible notes and other associated guarantee arrangements.

Pompliano highlighted that ProCap BTC agreed to purchase BTC using the funds raised in the Preferred Equity Raise within fifteen days of signing the agreements. The BTC assets will be held in a custodial account until the completion of the deal, providing future shareholders of ProCap Financial with immediate exposure to Bitcoin.

Leading investors participating in the deal include Magnetar Capital, Woodline Partners LP, Anson Funds, RK Capital, Off the Chain Capital, Parafi, Blockchain.com, Arrington Capital, BSQ Capital Partners, and FalconX. Industry veterans such as Mark Yusko, Jason Williams, Eric Semler, Tony Guoga, and Mattei Franceschetti also participated.

ProCap Financial will focus on acquiring BTC for its balance sheet and developing products and services to generate revenue and profit from Bitcoin on the firm’s balance sheet. CEO of CCCM, Gary Quin, mentioned that Pompliano’s track record as an innovative investor, operator, and early advocate in the Bitcoin ecosystem drew him to the partnership.

Shareholders of CCCM and unitholders of ProCap BTC will receive newly-issued securities of ProCap Financial as consideration in the business deal. The number of ProCap Financial shares issuable to the holders at closing will depend on the value of the BTC measured as of a day shortly before the closing. The holders will receive ProCap shares representing 1.25 times the number of preferred units delivered to them upon consummation of the equity raise.

Before the merger, the agreement was approved by the board of directors of CCCM and by the board of managers of ProCap BTC. The terms of the deal include the proposal and its terms getting approved by the requisite CCCM shareholders and by the sole voting unit holder of ProCap BTC, an entity owned and controlled by Pompliano.