US investor strikes $1 billion merger to create bitcoin treasury company
FILE PHOTO: Representations of cryptocurrency Bitcoin are seen in this illustration taken November 25, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
BOSTON (Reuters) -U.S. investor and entrepreneur Anthony Pompliano announced on Monday the creation of a new bitcoin 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 financialservices 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 companieswere 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."
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Saad Sayeed)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
![MARKET PULSE AM JUNE 24, 2025 [WATCH]](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fassets%2FNST-Logo%402x.png%3Fid%3Db37a17055cb1ffea01f5&w=48&q=75){kind=small}
New Straits Times
24 minutes ago
- New Straits Times
MARKET PULSE AM JUNE 24, 2025 [WATCH]
KUALA LUMPUR: News on the latest moves on the stock and crypto markets. Bursa Malaysia opened slightly lower on Tuesday, as investor sentiment remained cautious despite overnight gains on Wall Street. Global shares rallied and the US dollar extended losses after President Donald Trump announced a ceasefire between Iran and Israel, easing some geopolitical tensions. Back home, the FBM KLCI is expected to trend within the 1,510 to 1,530 range today. In the crypto market, Bitcoin climbed to RM448,879. Ethereum rose to RM10,280, while Solana was up at RM613. That's it for Market Pulse.
The Sun
3 hours ago
- The Sun
Shell's LNG Canada hits key milestone with first gas output
HOUSTON/CALGARY: The Shell-led LNG Canada facility has produced its first liquefied natural gas for export in Kitimat, British Columbia, a spokesperson for the project confirmed on Sunday. The new production, which will go mainly to Asia, comes amid concerns over disruptions to the 20% of global gas supply coming from Qatar, due to the Israel-Iran conflict and the possibility of Tehran closing the Strait of Hormuz, a key shipping lane. The facility has not yet loaded its first LNG export cargo, although LNG Canada said it remains on track to do by the middle of this year. The facility is the first large-scale Canadian LNG project to begin production and also the first major LNG facility in North America with direct access to the Pacific Coast, significantly reducing sail time to Asian markets when compared with U.S. Gulf coast facilities. When fully operational it will have a capacity to export 14 million metric tonnes per annum (mtpa), according to company statements. Shell and its partners in the LNG Canada project are working toward reaching a final investment decision next year for doubling the project's 14 million metric tonnes per year (mtpa) capacity, Cederic Cremers, Shell's president of integrated gas, told Reuters. He added he expected the project's first phase to fully reach its 14 mtpa capacity next year, after starting up this month. LNG tanker Gaslog Glasgow is approaching LNG Canada's Kitimat port, according to LSEG ship tracking data. The vessel is expected to arrive on June 29 and will be loaded with LNG, the sources said. The LNG Canada project is a joint venture between Shell Plc , Petronas, PetroChina, Mitsubishi Corporation and Kogas. Once the facility enters service, Canadian gas exports to the U.S. will likely decline, traders said, as Canadian energy firms will have another outlet for their fuel. For now, the U.S. is the only outlet for Canadian gas. Canada has two other smaller LNG export facilities also under construction on the Pacific Coast. The facilities, Woodfibre LNG and Cedar LNG, are expected to be completed between 2027 and 2028. Canada exported about 8.6 billion cubic feet per day (bcfd) of gas via pipelines to the U.S. in 2024, up from 8.0 bcfd in 2023 and an average of 7.5 bcfd over the prior five years (2018-2022), according to data from the U.S. Energy Information Administration. That compares with a record 10.4 bcfd in 2002.
The Sun
3 hours ago
- The Sun
Shell-led LNG Canada produces first LNG amid global supply concerns
HOUSTON/CALGARY: The Shell-led LNG Canada facility has produced its first liquefied natural gas for export in Kitimat, British Columbia, a spokesperson for the project confirmed on Sunday. The new production, which will go mainly to Asia, comes amid concerns over disruptions to the 20% of global gas supply coming from Qatar, due to the Israel-Iran conflict and the possibility of Tehran closing the Strait of Hormuz, a key shipping lane. The facility has not yet loaded its first LNG export cargo, although LNG Canada said it remains on track to do by the middle of this year. The facility is the first large-scale Canadian LNG project to begin production and also the first major LNG facility in North America with direct access to the Pacific Coast, significantly reducing sail time to Asian markets when compared with U.S. Gulf coast facilities. When fully operational it will have a capacity to export 14 million metric tonnes per annum (mtpa), according to company statements. Shell and its partners in the LNG Canada project are working toward reaching a final investment decision next year for doubling the project's 14 million metric tonnes per year (mtpa) capacity, Cederic Cremers, Shell's president of integrated gas, told Reuters. He added he expected the project's first phase to fully reach its 14 mtpa capacity next year, after starting up this month. LNG tanker Gaslog Glasgow is approaching LNG Canada's Kitimat port, according to LSEG ship tracking data. The vessel is expected to arrive on June 29 and will be loaded with LNG, the sources said. The LNG Canada project is a joint venture between Shell Plc , Petronas, PetroChina, Mitsubishi Corporation and Kogas. Once the facility enters service, Canadian gas exports to the U.S. will likely decline, traders said, as Canadian energy firms will have another outlet for their fuel. For now, the U.S. is the only outlet for Canadian gas. Canada has two other smaller LNG export facilities also under construction on the Pacific Coast. The facilities, Woodfibre LNG and Cedar LNG, are expected to be completed between 2027 and 2028. Canada exported about 8.6 billion cubic feet per day (bcfd) of gas via pipelines to the U.S. in 2024, up from 8.0 bcfd in 2023 and an average of 7.5 bcfd over the prior five years (2018-2022), according to data from the U.S. Energy Information Administration. That compares with a record 10.4 bcfd in 2002.
