Crypto entrepreneur Anthony Pompliano’s firm ProCap made its first Bitcoin purchase just days after revealing that it plans to go public later this year.
The Bitcoin financial services firm, ProCap BTC, said on Tuesday that it purchased 3,724 Bitcoin (BTC) for $386 million. The investment is now worth just shy of $400 million at current market prices, as the asset has gained since the buy.
The firm purchased the assets at a time-weighted average price of $103,785 per BTC. The buy follows the ProCap’s announcement on Monday that it plans to go public via a merger with the blank-check company Columbus Circle Capital to 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.
The firm plans to buy up to $1 billion worth of Bitcoin for its balance sheet as part of its ongoing business strategy, joining the growing ranks of corporate BTC treasury firms.
SPAC merger for IPO
The merger with Columbus, a special purpose acquisition company (SPAC), has been orchestrated to take ProCap public, and firms have raised more than $750 million for the deal, drawing in $516 million in equity and $235 million in convertible notes.
Related: Pompliano’s crypto firm raises $750M to go public via SPAC
A SPAC is a shell company that is set up to acquire or merge with an existing private company in order to take it public.
ProCap joins Bitcoin treasury bubble
Pompliano’s venture is the latest to join an ever-increasing list of companies scooping up Bitcoin for corporate treasuries.
If the firm went public today, its Bitcoin holdings would be the 14th-largest among public company Bitcoin holdings, just behind medical tech firm Semler Scientific, according to BiTBO.
Corporate buying continues
Just this week, Bitcoin treasury giants Strategy and Japan’s Metaplanet increased their holdings to 592,345 BTC and 11,111 BTC, respectively.
Meanwhile, real estate mogul Grant Cardone announced his firm’s first Bitcoin purchase with 1,000 BTC for its corporate treasury.
Mineral exploration company Panther Metals also announced a Bitcoin treasury strategy combining traditional mining assets with crypto, and plans to buy $5.4 million worth.
Norwegian deep-sea mining firm Green Minerals also announced plans to buy $1.2 billion in Bitcoin this week.
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