US investor strikes $1 billion merger to create bitcoin treasury company
By Gertrude Chavez-Dreyfuss
BOSTON (Reuters) -U.S. investor and entrepreneur Anthony Pompliano announced on Monday the creation of a new bitcoin (BTC-USD) treasury company that would hold up to $1 billion of the world's largest cryptocurrency on its balance sheet.
Pompliano said in a statement that his financial services firm ProCap BTC would merge with Columbus Circle Capital I, a special purpose acquisition company, to create ProCap Financial, a bitcoin treasury firm.
Several public companies have employed bitcoin treasury strategies, which involves allocating a portion of their cash and reserves toward bitcoin, to replicate the success of software company Strategy, which began accumulating bitcoin in 2020 and now holds more than $63 billion worth of the digital token.
The trend comes as U.S. President Donald Trump has sought to overhaul cryptocurrency policy, including calls to establish a strategic bitcoin reserve, after courting cash from the industry on the campaign trail.
Pompliano, one of the biggest investors in the crypto space over the last several years, said ProCap BTC has raised $500 million in equity and $250 million in a convertible note, in what he termed the largest initial fundraising in history for a bitcoin treasury company.
Unlike traditional bitcoin treasury companies, Pompliano said ProCap Financial would use its bitcoin balance sheet to generate revenue and profit through a variety of strategies, including lending, derivatives, and other products and services.
He also said leading institutional investors Citadel, Susquehanna, Jane Street, and Magnetar have committed capital, as have crypto firms Off the Chain Capital, Pantera, Coinfund, Parafi, Blockchain.com, and FalconX.
Reuters was unable to verify whether these companies were investing in ProCap Financial.
"The legacy financial system is being disrupted by bitcoin right before our eyes," Pompliano said.
"Our objective is to develop a platform that will not only acquire bitcoin for our balance sheet, but will also implement risk-mitigated solutions to generate sustainable revenue and profits from our bitcoin holdings."
By subscribing, you are agreeing to Yahoo's
Terms
and
Privacy Policy
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
San Francisco Chronicle
29 minutes ago
- San Francisco Chronicle
With its stock in sharp decline, Trump's media company will buy $400 million of its own shares
NEW YORK (AP) — President Donald Trump's media company plans to buy back up to $400 million of its stock, which have lost 46% of their value this year. Trump Media and Technology Group, which operates the Truth Social media platform, said Monday that the acquisition will improve its financial flexibility. It will retire the shares after they are purchased, meaning these particular shares can't be reissued. Companies can drive their stock higher by acquiring or removing the number of company shares outstanding. Trump is the largest stakeholder in Trump Media, with about 114 million shares. Shares of Trump Media rose just over 2% Monday. But the shares appeared to peak about a month after the company went public in late March. Shares have been on a steady, downward trajectory since. The company said early this year that it lost $400.9 million in 2024 and its annual revenue declined 12% to $3.6 million. After winning the U.S. presidential election in November, Trump transferred all of his shares in the company — worth around $4 billion on paper — as a gift to the Donald J. Trump Revocable Trust. Trump's shares amounted to more than half of the company's stock. The company said Monday that it will fund the buyback separately from its Bitcoin treasury strategy. Under that plan, institutional investors will buy $2.5 billion in the company's stock with the proceeds going to build up a bitcoin reserve.
The Hill
29 minutes ago
- The Hill
With its stock in sharp decline, Trump's media company will buy $400 million of its own shares
NEW YORK (AP) — President Donald Trump's media company plans to buy back up to $400 million of its stock, which have lost 46% of their value this year. Trump Media and Technology Group, which operates the Truth Social media platform, said Monday that the acquisition will improve its financial flexibility. It will retire the shares after they are purchased, meaning these particular shares can't be reissued. Companies can drive their stock higher by acquiring or removing the number of company shares outstanding. Trump is the largest stakeholder in Trump Media, with about 114 million shares. Shares of Trump Media rose just over 2% Monday. But the shares appeared to peak about a month after the company went public in late March. Shares have been on a steady, downward trajectory since. The company said early this year that it lost $400.9 million in 2024 and its annual revenue declined 12% to $3.6 million. After winning the U.S. presidential election in November, Trump transferred all of his shares in the company — worth around $4 billion on paper — as a gift to the Donald J. Trump Revocable Trust. Trump's shares amounted to more than half of the company's stock. The company said Monday that it will fund the buyback separately from its Bitcoin treasury strategy. Under that plan, institutional investors will buy $2.5 billion in the company's stock with the proceeds going to build up a bitcoin reserve. Trump Media joins other companies with similar cryptocurrency strategies, including cloud and mobile software developer MicroStrategy, which is building a reserve containing billions worth of bitcoin.
Associated Press
an hour ago
- Associated Press
With its stock in sharp decline, Trump's media company will buy $400 million of its own shares
NEW YORK (AP) — President Donald Trump's media company plans to buy back up to $400 million of its stock, which have lost 46% of their value this year. Trump Media and Technology Group, which operates the Truth Social media platform, said Monday that the acquisition will improve its financial flexibility. It will retire the shares after they are purchased, meaning these particular shares can't be reissued. Companies can drive their stock higher by acquiring or removing the number of company shares outstanding. Trump is the largest stakeholder in Trump Media, with about 114 million shares. Shares of Donald Trump Media rose just over 2% Monday. But the shares appeared to peak about a month after the company went public in late March. Shares have been on a steady, downward trajectory since. The company said early this year that it lost $400.9 million in 2024 and its annual revenue declined 12% to $3.6 million. After winning the U.S. presidential election in November, Trump transferred all of his shares in the company — worth around $4 billion on paper — as a gift to the Donald J. Trump Revocable Trust. Trump's shares amounted to more than half of the company's stock. The company said Monday that it will fund the buyback separately from its Bitcoin treasury strategy. Under that plan, institutional investors will buy $2.5 billion in the company's stock with the proceeds going to build up a bitcoin reserve. Trump Media joins other companies with similar cryptocurrency strategies, including cloud and mobile software developer MicroStrategy, which is building a reserve containing billions worth of bitcoin.
