ProCap BTC Buys 3,724 Bitcoin for $386 Million Ahead of SPAC Merger

Anthony Pompliano’s ProCap BTC has made a significant move in the cryptocurrency market by purchasing 3,724 Bitcoin for $386 million. This acquisition was made at a time-weighted average price of $103,785 per Bitcoin, just days before the firm announced its plans to go public later this year through a merger with Columbus Circle Capital, a special purpose acquisition company (SPAC). The new entity formed from this merger will be named ProCap Financial.

Pompliano, a well-known Bitcoin advocate and entrepreneur, has expressed his firm’s conviction in the asset, stating, “We believe Bitcoin is the new hurdle rate. If you can’t beat it, you have to buy it.” This purchase brings ProCap BTC’s total Bitcoin holdings to nearly $400 million, as the value of Bitcoin has risen since the acquisition.

The firm’s strategy includes accumulating up to $1 billion in Bitcoin as part of its broader treasury strategy. Backers of the upcoming SPAC deal have already raised over $750 million, with $516 million in equity commitments and $235 million via convertible notes. If ProCap were to go public today, its Bitcoin position would rank 14th among all publicly listed companies, placing it just behind Semler Scientific, a medical technology firm that recently entered the Bitcoin treasury space.

ProCap BTC is not alone in its aggressive move into Bitcoin. MicroStrategy extended its lead this week with holdings now totaling 592,345 BTC. Japan’s Metaplanet increased its exposure to 11,111 BTC. Grant Cardone’s real estate group disclosed its first buy, 1,000 BTC, while mineral exploration company Panther Metals laid out a $5.4 million crypto strategy combining traditional mining with digital assets. Additionally, Norway’s Green Minerals AS revealed plans to allocate $1.2 billion toward Bitcoin purchases.

However, not all analysts are optimistic about the Bitcoin treasury strategies used by certain public companies. VanEck’s head of digital asset research, Matthew Sigel, recently raised concerns, suggesting that continued accumulation of BTC could soon harm shareholders more than help. He specifically criticized the use of at-the-market (ATM) share issuance programs, warning that they can become dilutive when stock prices approach the company’s Bitcoin net asset value (NAV). Sigel proposed several measures to prevent value erosion, including pausing ATM programs if a company’s stock trades below 0.95x NAV for over 10 days. He drew comparisons to past failures in the crypto mining sector, where excessive dilution and executive pay led to major shareholder losses. As an example, he cited Semler Scientific, a medical tech firm that entered the BTC space in 2024. Despite acquiring 3,808 BTC, its stock has fallen over 45%, and its mNAV has dropped to 0.82x.