ProCap BTC Completes SPAC Merger to Form ProCap Financial, Faces Declining Share Prices
ProCap BTC and Columbus Circle Capital (ticker BRR) have completed their SPAC merger, resulting in the combined entity being renamed ProCap Financial. The company will trade on Nasdaq under the ticker BRR.
Shares of BRR have fallen more than 50% during the week amid the merger progression, closing at $4.36. This is a significant drop from prices near $10 over recent months, with the shares having closed at $10.15 on November 28.
ProCap BTC had originally raised over $750 million with the objective of building a bitcoin treasury firm. However, bitcoin treasury companies formed via SPACs this year have generally experienced steep declines of over 90% after their deals. Notable examples include KindlyMD (NAKA) and Strive (ASST), which are currently trading below $1 per share.
Anthony Pompliano, associated with ProCap BTC, disclosed compensation concessions related to the merger. His salary is set at $1 per year with no guaranteed bonus, and his equity compensation is deferred until the company’s stock price reaches $15 per share. Additionally, the company’s board agreed not to grant equity compensation until specific price targets are met.
PIPE investors involved in the SPAC deal also have targets that must be achieved to trigger certain outcomes.
Investor concerns over management and board compensation have been cited as key risk factors affecting this wave of bitcoin treasury companies formed through SPACs.
