A new Nasdaq-listed special purpose acquisition vehicle (Spac) led by Irish businessman Gary Quin is to merge with a bitcoin treasuries company, called ProCap BTC, in a deal that would take the latter public.
Mr Quin had previously set up another Spac – also known as listed cash shells or ‘blank cheque’ companies – in 2021, but that was subsequently put into liquidation two years later, after it failed to secure a tie-up with an operating company amid volatile equity markets at the time.
The businessman floated his latest Spac, called Columbus Circle Capital Corporation, in May after raising $220 million (€189.6 million) in an initial public offering (IPO).
ProCap BTC is led by US investor and podcast host Anthony Pompliano, ProCap raised more than $750 million in its funding round, including $235 million in convertible debt, with equity making up the rest.
The new firm aims to hold up to $1 billion in bitcoin on its balance sheet and generate revenue, by offering services like lending, trading, and capital markets – all denominated in bitcoin.
Spacs, which became a hot area of Wall Street in 2021 as equity markets were flying high, have re-emerged as a big investment theme this year.
“From day one we sought to partner with a platform and a leader that could develop a transformative organisation – and we found that in ProCap BTC and Anthony Pompliano,” said Gary Quin, CEO of Columbus Circle.
“Anthony’s track record as an innovative investor, operator, and early advocate in the bitcoin ecosystem speaks for itself. We believe his deep expertise and relentless conviction will help continue to transform an industry undergoing rapid evolution.”
After the tie-up is completed, the new entity will be called ProCap Financial and be headed by Mr Pompliano.