Anthony Pompliano, well-known for his outspoken crypto advocacy and investment acumen, has seen his latest venture, ProCap Acquisition Corp (ticker: PCAPU), enjoy a robust start on the Nasdaq. The fintech-focused Special Purpose Acquisition Company (SPAC) surged 7% on its first day of trading after the team behind it raised the IPO size just a day before going public.
Originally set to raise $200 million, ProCap bumped its initial public offering to $220 million by selling 22 million shares at $10 apiece. This strategic last-minute decision on May 20 helped the company better position itself in a competitive market. On its debut day, May 21, ProCap closed trading at $10.70 per share, with after-hours trading pushing it further up to $10.87, according to Yahoo Finance data.
ProCap’s underwriters also hold a 45-day option to purchase an additional 3.3 million shares at the IPO price, giving the SPAC extra flexibility to meet demand if investor appetite continues.
A SPAC with a Focus on Fintech, Crypto, and Healthcare
ProCap is designed to be a financial vehicle for acquiring or merging with companies primarily in the financial services, digital assets, asset management, or healthcare industries. The firm’s regulatory filing back in April made clear that the focus is broad but well-targeted toward sectors undergoing rapid innovation and disruption.
Pompliano himself is a familiar figure in the crypto world, known for hosting the popular “Off The Chain” podcast and managing the investment firm Professional Capital Management. His reputation as a bold investor and vocal Bitcoin proponent has certainly helped attract attention to this new SPAC.
In a May 21 interview with CNBC, Pompliano shared his motivation behind launching ProCap. He revealed that for five years, he’d been eager to take a company public but hadn’t witnessed sufficient demand in private markets. However, over the past six months, shifting regulations in the U.S. financial sector have created a more favorable environment.
He hinted that ProCap intends to bridge the gap between “crypto-native” startups and traditional financial institutions, expecting these sectors to increasingly converge. “The reason why I use the term financial services is basically the new digital world and the old incumbent world are all merging,” he explained.
Addressing SPAC Skepticism Head-On
SPACs have faced significant criticism recently for underperformance, conflicts of interest, and speculative hype. Pompliano acknowledged this perception in his CNBC appearance, stating that many SPACs have operated more like venture capital vehicles, chasing high-growth companies with shaky fundamentals and lofty valuations.
Unlike some others, Pompliano stressed that he has “real skin in the game,” personally investing millions of dollars into ProCap. “I’m taking a huge reputation risk,” he said candidly.
To strengthen the team, ProCap also brought on board Brent Saunders, CEO of Bausch + Lomb, as a strategic advisor. Saunders brings decades of expertise, having completed mergers and acquisitions totaling over $300 billion throughout his career, adding an extra layer of credibility and experience to the SPAC’s leadership.
What’s Next for ProCap?
With its successful IPO behind it, ProCap now embarks on the search for promising companies that fit its fintech and crypto focus. Pompliano’s vision of blending the emerging digital asset world with established finance seems poised to capture investor interest as both industries evolve.
Given Pompliano’s track record and his willingness to back his convictions financially, many eyes will be on ProCap as it moves forward. Whether it can navigate the challenging SPAC landscape and deliver value to shareholders remains to be seen, but the initial market response has certainly been encouraging.
