ProCap BTC Merger Targets 1.3x Implied mNAV Premium with $750 Million Capital Raise

Anthony Pompliano's bitcoin treasury company, ProCap BTC LLC, is set to merge with Columbus Circle Capital Corp 1 (Nasdaq: CCCM) in a business combination valued at approximately $1 billion. The definitive agreement, announced weeks prior, involved ProCap BTC LLC raising over $750 million in capital to fuel its bitcoin acquisition strategy. The combined entity will operate as ProCap Financial, Inc., aiming to become a leading financial services firm at the intersection of bitcoin and traditional finance.

As part of its aggressive accumulation strategy, ProCap BTC has already deployed a significant portion of its initial capital, purchasing over $500 million worth of bitcoin. "My goal with this business is to continue acquiring as much bitcoin as possible," Pompliano stated in a recent social media post. The company currently holds 4,950 bitcoin, positioning itself as a substantial player in the corporate bitcoin treasury landscape.

A key metric highlighted by Pompliano is the implied market value premium (mNAV). According to an internal analysis, ProCap BTC LLC boasts the lowest implied mNAV at 1.3x among comparable bitcoin treasury companies. "This is substantially lower than any other company on the list, making ProCap BTC LLC’s valuation the cheapest in the ranking based on the implied mNAV metric," Pompliano explained. This valuation metric is presented as a crucial indicator for investors evaluating relative value within the sector.

The merger includes a provision for Columbus Circle Capital Corp 1 stockholders, allowing them to redeem their public shares for an anticipated pro rata value of approximately $10.00 per share. Pompliano noted a potential upside for CCCM shareholders: "if CCCM’s mNAV were to expand to match the next cheapest stock, Cantor Equity Partners at 2.2x, then the stock would be trading at approximately $17.82 per share." The transaction is pending regulatory approvals, including SEC review of a Form S-4 registration statement, with a target closing by the end of 2025.