Columbus Circle Capital (BRR), a special purpose acquisition company (SPAC), has finalized its merger with ProCap BTC, led by Anthony Pompliano, which has raised over $750 million to create a bitcoin treasury firm.
The new entity is now called ProCap Financial and will start trading on the Nasdaq under the BRR symbol on Monday.
This year’s rapid formation of bitcoin treasury companies (BTCTCs) has been largely unsuccessful, with most experiencing declines of 90% or more following their SPAC mergers.
Notably, companies like KindlyMD (NAKA) and Strive (ASST) are now trading for less than $1.
BRR shares had remained stable near their initial offering price of $10 for several months, even closing at $10.15 on Friday, Nov. 28, as investors may have hoped the merger could be stalled, prompting Columbus Circle to seek alternative merger partners or return capital to shareholders.
However, as the merger’s finalization became clear this week, BRR shares dropped over 50%, ending yesterday at $4.36.
Pomp addresses investor concerns
This year’s BTCTCs face challenges, including the lucrative compensation packages for management and board members. Investors rightfully question why they should pay high fees for services they can manage themselves—simply buying and holding bitcoin.
Responding to these concerns, Pompliano stated that he will accept a salary of just $1 per year, with no guaranteed bonuses. Additionally, he committed that any equity compensation will only become available once the stock reaches $15 per share, over three times its current trading price.
Furthermore, Pompliano disclosed that the board has agreed to defer any equity compensation until specific price targets are achieved. Preferred investors in the SPAC deal, known as PIPE investors, must also meet certain targets.
“CEOs and Boards shouldn’t be making millions unless retail shareholders are also benefiting,” Pompliano said. “Now that I am leading a public company, I aim to set a standard for genuine shareholder alignment.”
