Procap, the Bitcoin treasury firm recently unveiled by Anthony Pompliano, has successfully procured its initial batch of 3,724 BTC. The purchase was made at a time-weighted average price (TWAP) of $103,785 per coin, resulting in an overall expenditure of around $385 million, as per a public announcement made on Tuesday.
The newly acquired Bitcoins, now part of the firm’s balance sheet, offer an investment opportunity to those who want to tap into Bitcoin’s price dynamics, but prefer maintaining their stake in equity. Procap’s ultimate objective is to possess Bitcoin worth $1 billion.
Procap made headlines on Monday when it announced a proposed merger with Columbus Circle Capital Corp. (CCCM) worth $1 billion, with plans to go public as ProCap Financial, Inc. This comes as a part of a growing trend of crypto treasury firms that finance their digital asset acquisitions through equity and debt sales. This business model has been largely inspired by the success story of Michael Saylor’s Strategy.
In a statement released on Monday, Procap declared that it had amassed $516.5 million through equity offerings and $235 million via convertible notes sales. This marks “the largest initial fundraise in history for a public bitcoin treasury company.”
Procap reassured its investors by swiftly using the funds raised to acquire Bitcoin. The firm emphasized that equity investors have already gained immediate exposure to Bitcoin following the equity raise. As part of its continuous business strategy, Procap intends to further invest in Bitcoin. It had previously stated that it plans to generate revenue and profits “through a variety of strategies.”
Note: This news piece is shared for informational purposes only and should not be considered as financial or investment advice. Always conduct your own research before making any investment decisions.
