1. ProCap BTC to merge with Columbus Circle Capital Corp. I (CCCM). 2. The deal includes a record $750 million capital raise for the joint firm. 3. ProCap Financial will focus on integrating bitcoin with traditional finance. 4. CEO Anthony Pompliano will lead the new entity post-merger. 5. Experts note this signifies bitcoin's shift to a strategic asset.
The record capital raise and focus on bitcoin signify growth potential for CCCM.
The merger enhances CCCM's market position in digital assets, reflecting institutional trust.
As institutional adoption expands, the merger sets the stage for long-term company valuation increases.
Global law firm Reed Smith LLP is pleased to announce its role as legal counsel to ProCap BTC, LLC ("ProCap BTC"), a bitcoin-native financial services firm, in connection with its proposed business combination with Columbus Circle Capital Corp. I (NASDAQ: CCCM), a special purpose acquisition company. The combined public company is expected to operate as ProCap Financial, Inc. ("ProCap Financial") upon the closing of the transactions. ProCap Financial aims to become the leading financial services firm at the intersection of bitcoin and traditional finance.
In connection with the business combination, the parties raised over $750 million from leading institutional and bitcoin-native investors--the largest initial fundraise in history for a public bitcoin treasury company. The capital raise was comprised of $516.5 million in preferred equity securities of ProCap BTC and $235 million in commitments for senior secured convertible notes of ProCap Financial. The preferred equity raise funded at the signing of the definitive documents and the convertible note raise will fund at the closing of the proposed transactions.
The transaction structure provides preferred equity investors with immediate exposure to bitcoin, since ProCap BTC agreed to purchase bitcoin with the proceeds of the equity raise within 15 days of signing the definitive documents.
Anthony Pompliano, ProCap BTC's founder and chief executive officer, will serve as the chief executive officer of ProCap Financial upon the closing of the proposed transactions.
"This deal marks a defining moment in the institutional adoption of bitcoin, which is no longer viewed as speculative but a core strategic asset for public and pre-public companies alike," said Constantine Karides, chair of Reed Smith's Crypto and Digital Assets Group.
"ProCap's approach–combining sophisticated capital execution with bitcoin-native strategies–exemplifies how the next generation of financial services will be built. We're proud to help pioneers like Anthony Pompliano bring financial innovation to the public markets in a way that's both compliant and catalytic for the next era of asset management."
The Reed Smith team was led by Karides, along with capital markets partners Katherine Geddes and Lynwood Reinhardt.
Reed Smith recently served as legal counsel on Trump Media and Technology Group Corp.'s groundbreaking $2.5 billion bitcoin treasury deal and the merger between health care company KindlyMD, Inc. and Nakamoto Holdings Inc., a bitcoin-native holding company, to start a bitcoin treasury strategy.
Reed Smith is a global law firm dedicated to helping clients navigate the intersection of innovation, finance, and regulation. With over 1,500 lawyers across 30 offices worldwide, Reed Smith is a trusted advisor to financial institutions, emerging ventures, and market leaders in digital assets and blockchain technologies.
SOURCE Reed Smith LLP