$1 Billion Bitcoin Treasury Firm Launched by U.S. Investor Pompliano in Historic Crypto Merger
A major move in the cryptocurrency world unfolded as U.S. entrepreneur Anthony Pompliano announced the formation of a new bitcoin treasury company, ProCap Financial, which aims to hold up to $1 billion in Bitcoin. This new entity emerges from the merger between ProCap BTC and Columbus Circle Capital I, a SPAC (special purpose acquisition company). The new firm will focus on managing a significant bitcoin balance sheet and generating profit from it, marking a shift from traditional treasury strategies.
Bitcoin treasury strategies have gained popularity among public companies aiming to emulate MicroStrategy’s success. MicroStrategy, a pioneer in corporate bitcoin investments, currently holds over $63 billion in bitcoin. Pompliano’s initiative echoes this trend, positioning ProCap Financial to be a major institutional player. Notably, this development aligns with U.S. political shifts, as former President Donald Trump has proposed building a strategic bitcoin reserve, signaling potential policy support for crypto initiatives.
ProCap BTC has already secured substantial backing, raising $750 million—$500 million in equity and $250 million through a convertible note. This makes it the largest initial raise for a bitcoin treasury firm to date. Pompliano emphasized that unlike previous treasury models, ProCap Financial aims to use its holdings for more than just long-term investment. Revenue strategies will include lending, derivatives, and other advanced financial tools.
Key institutional investors reportedly involved include Citadel, Susquehanna, Jane Street, and Magnetar, alongside prominent crypto-focused firms like Pantera and Coinfund. However, Reuters could not independently verify these commitments. Still, the scale of the deal suggests increasing institutional appetite for bitcoin-based financial services.
Pompliano framed the venture as part of a broader disruption of the traditional financial system. His vision is not only to accumulate bitcoin as a reserve asset but also to actively monetize it while managing risk. The establishment of ProCap Financial may mark a new chapter in corporate crypto adoption and could influence how both investors and policymakers approach digital asset treasuries moving forward.
Source: Reuters