Shortly
- Anthony Pompliano is a well-known crypto investor. He has applied for an IPO of $200 million by a SPAC named ProCap Acquisition Corp.
- SPAC is a fund that targets companies with high growth in fintech, digital assets and other sectors.
- Pompliano has control of the sponsoring entity and is positioned to make significant gains if a merger goes well.
Anthony Pompliano, a high-profile crypto investor and social media personality, is looking to take his influence public—literally.
ProCap Acquisition Corp., an blank-check business led by Pompliano File paperwork On Wednesday, the U.S. Securities and Exchange Commission approved a $200 million initial public offering.
Each $10 unit will consist of one Class A Ordinary Share and a third warrant.
The SPAC will target businesses across financial services, fintech, and digital assets—areas where Pompliano has built both a portfolio and a persona.
Pompliano, a former product lead at Facebook, and former cofounder of Morgan Creek Digital now heads Professional Capital Management. This investment firm uses content channels in order to generate deal flow and engage consumers.
Ses daily newsletters, his podcast and the social media audience he has built are touted as valuable assets to be acquired.
ProCap doesn’t have a target in mind, but its filing says it is looking for firms with “high growth potential” as well as “clear competitive advantages.” These are companies that would benefit most from going public to gain access to the capital markets.
Deal structure is typical of SPACs. Sponsor, Pompliano alone, receives 5,75 million founding shares for just $25,000 or less than one-half cent each.
If a deal closes, these units can convert into Class A Shares. That creates an opportunity for a large profit even if investors are not successful. Another 430,000 units are being purchased in parallel placements.
Mixed Results
Crypto SPACs can be used to invest in a variety of crypto currencies. Checkered record. Many failed to complete deals due to regulatory scrutiny and poor performance after mergers.
Pompliano bets that ProCap’s position will change because of the visibility and network he enjoys as a former early investor.
This offering coincides with a recovery in the digital asset market, as Bitcoin has recently crossed $94,000. Institutional appetite for exposure to crypto continues to increase.
It is possible that this backdrop will help ProCap achieve a goal in a field where there have been less public exits over the past few quarters.
The management team at ProCap includes experts with experience in digital asset compliance, mergers and acquistions, and venture capital.
Pompliano may be able to convert social capital in shareholder returns, but ultimately the success of this vehicle will depend on his ability.
