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2mo ago

ProCap Financial Nets $750 Million in SPAC Merger to Build Bitcoin Treasury

It plans to hold up to $1 billion in bitcoin by offering loans, derivatives and other services to generate revenue from its digital holdings

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Representations of cryptocurrency Bitcoin are seen in this illustration taken November 25, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
Anthony Pompliano's ProCap BTC will merge with SPAC to create a Bitcoin treasury company.

Overview

  • The SPAC merger gives ProCap Financial public-market access after raising more than $750 million, including $235 million in convertible debt.
  • The firm intends to allocate up to $1 billion in bitcoin on its balance sheet and immediately begin buying crypto.
  • ProCap will monetize its bitcoin holdings through lending, derivatives trading and a suite of bitcoin-denominated financial products.
  • Institutional backers such as Citadel, Susquehanna, Jane Street and Magnetar joined crypto investors like Pantera, Blockchain.com and FalconX in the funding round.
  • The surge of corporate bitcoin treasuries driven by cheap capital and President Trump’s strategic reserve calls has raised concerns about a potential bubble.