ProCap, a crypto-entrepreneur Anthony Pompliano’s startup firm, has made its very first Bitcoin purchase only days after the announcement that it will be going public at the end of this year.
ProCap BTC is a Bitcoin-based financial services company. said On Tuesday, it announced that it had purchased 3,724 Bitcoins (BTC) at a cost of $386,000,000. At current market values, the investment is now just short of $400m at the latest prices.
The asset was purchased for a price of $103,785 per BTC, based on a weighted-average time. ProCap announced on Monday its intention to merge with blank-check firm Columbus Circle Capital and become ProCap Financial.
“We believe Bitcoin is the new hurdle rate. If you can’t beat it, you have to buy it,” Pompliano said On X.
It is part of the company’s ongoing business plan to purchase up to 1 billion dollars worth of Bitcoin to add to its balance sheet. The firm joins the increasing ranks of BTC corporate treasury companies.
SPAC merger for IPO
ProCap has raised over $1.5 billion through the merger of Columbus with a Special Purpose Acquisition Company (SPAC). $750 million The deal raised $516,000,000 in equity, and $235,000,000 in convertible notes.
Related: Pompliano’s crypto firm raises $750M to go public via SPAC
SPACs are shell companies that have been set up in order to merge or acquire a private company to bring it to the public market.
ProCap Joins Bitcoin Treasury Bubble
Pompliano’s project is the latest in a growing list of businesses that are grabbing Bitcoin to fund corporate treasures.
Its Bitcoins holdings are the 14th largest amongst public companies. They would only be behind the medical tech company. Semler ScientificAccording to BiTBO,
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Only this week, Bitcoin’s treasury titans Strategy and Japan Metaplanet have increased their respective holdings of 592,345 BTC (Bitcoin) and 11,111 BTC.
Meanwhile, real estate mogul Grant Cardone announced The first Bitcoins purchased by his company were 1,000 BTC.
Panther Metals, a mineral exploration and mining company. announced A Bitcoin Treasury Strategy combines traditional mining assets and crypto. Plans to purchase $5.4 million in total.
Norwegian deep-sea mining firm Green Minerals also announced plans to buy $1.2 billion in Bitcoin This week.
Magazine: History suggests Bitcoin taps $330K, crypto ETF odds hit 90%: Hodler’s Digest
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Source: cointelegraph.com
