Anthony Pompliano announces $1 billion SPAC deal to jumpstart ProCap Financial, a new bitcoin treasury firm

Entrepreneur Anthony Pompliano announced today a $1-billion deal with a special purpose acquisition company (that is, a SPAC) to establish ProCap Financial Inc. as a publicly-traded, bitcoin-native financial services company. 

Pompliano said on X, “The company will be a publicly traded entity on Nasdaq at the conclusion of the proposed business combination between my private company ProCap BTC, LLC and Columbus Circle Capital Corp I, a publicly traded SPAC.” 

According to the press release, the two entities raised $516.5 million in equity and $235 million in convertible notes to create the new firm, “the largest initial fundraise in history for a public bitcoin treasury company.”

Sequans Communications, a supplier of 5G semiconductors, also announced a bitcoin treasury initiative Monday. The firm is issuing and selling $195 million in equity securities and $189 million in a principal amount of convertible secured debentures, and will partner with US-based company Swan Bitcoin to help with its treasury strategy operations. 

The announcements of ProCap Financial and Sequans Communications come as more corporate firms initiate digital asset treasuries, such as Trump Media and GameStop.

Even though Michael Saylor’s Strategy, the pioneer in bitcoin treasuries, has seen extraordinary gains in the price of its shares, the pivot to bitcoin may be losing its luster.

“I don’t think it’s set to lose its appeal anytime soon. It’s still another risk asset which, if you believe price predictions, will benefit your balance sheet in the long-term,” Nicolai Søndergaard, a research analyst at blockchain analytics firm Nansen, told Sherwood News. 

However, Maksim Tkachuk, an analyst at on-chain data platform Santiment, expressed a cautionary skepticism. “There’s only so many failed companies and mattress salesmen that bitcoin can accommodate without toppling,” he told Sherwood.