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ProCap BTC raises $750 million in equity and convertible

note

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ProCap Financial to use bitcoin for revenue via lending,

derivatives

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Institutional investors commit capital, but Reuters can't

verify

investments

By Gertrude Chavez-Dreyfuss

BOSTON, June 23 (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 financial services

firm ProCap BTC would merge with Columbus Circle Capital I ( CCCM ), 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."