Quick Pitch: ProCap Acquisition (PCAPU)

SPACs in the crypto space with a high chance of spiking upward

I’ve been digging deeper into the crypto treasury bubble theme, which I touched on in the recent RTACU and CEPO/CEPT write-ups. Those still look like the most compelling bets—backed by politically connected sponsors who clearly know how to play the game.

That said, there are a few other SPACs with pretty interesting angles that fit into this same theme and are worth keeping on the radar: PCAPU (covered below), CCCM (here), MBAV (here), TACO (here).

 

ProCap Acquisition (PCAPU)
This is Anthony Pompliano’s (a.k.a. Pomp) own SPAC, which also IPO’d just under a month ago. The intended playbook is similar to the rumored CCCM deal, i.e. to leverage Pomp’s influence in the crypto space or, as PCAPU’s advisor put it: “look for places where he can really use his media presence to amplify the visibility of the potential target”.

One curious detail is that in this CNBC interview shortly after the IPO, Pomp claimed that the investment bank running the process, “told us yesterday that there was approximately $1.8bn of demand, so approximately 9x oversubscribed”. It’s hard to know how reliable that figure is, especially since the IPO wasn’t upsized despite the supposed demand. That said, PCAPU’s investment bank is BTIG, which is an established mid-market bank co-owned by Goldman. It’s a bit difficult to imagine that Pomp cited BTIG on national television with numbers that were completely off-base. Given the current environment and Pomp’s involvement, it’s possible the IPO really was oversubscribed.

One advantage PCAPU has over CCCM is that it trades closer to trust value. The warrants haven’t been separated yet, and the units (which include one-third of a warrant) are trading at $11.75/share. That puts the downside to trust value, including accrued interest, at around 10%-12%.

Pomp has been hinting that PCAPU might target an operating business (i.e. something profitable, with a strong management team, etc.) instead of just creating a crypto treasury. However, these ‘target preferences’ of SPACs are often very fluid, and many have ended up merging with companies far outside of initially stated focus. Whatever that’s worth, Pomp also appears to be under some pressure from his audience to ‘buy Bitcoin’ (check this discussion thread, which MSTR’s Saylor also joined).

PCAPU’s special advisor is Brent Saunders, a prominent dealmaker and currently the CEO / chairman of BLCO, a global eye health company with a $4.3bn market cap. While advisors on SPACs sometimes simply lend their names without playing an active role, it’s notable that Saunders joined Pomp on CNBC to promote the vehicle.

All of this is reminiscent of the initial coin offering craze back in 2017-2018, where the names of high profile advisors were enough to raise millions. And in line the reputational risk claims at the time, we now have this (from Pomp’s CNBC interview):

“One of the things that both Brent and I have looked at is […] we’re putting millions of dollars into this, so we’ve got real skin in the game. But for me, there’s also significant reputational risk. I’ve been very clear about this: I cannot be a SPAC sponsor who just does a deal, sells the shares, and disappears. My reputation is on the line. I not only need to do a good deal at a good price—I also have to be able to build that company for the long run and create shareholder value. And honestly, it’s the reputational risk that I’m most focused on.”

The selected ticker for the vehicle wasn’t the obvious choice—‘POMP’—which might be the first sign that the people involved actually care about their reputations ;)

• IPO Date: May 21, 2025
• IPO Size: $250m (including $30m taken by the underwriters)
• IPO Price: $10/share
• Warrants: not separated yet, units include one-third of a warrant
• Sponsor’s stake: 20%
• Sector preference: financial services
• Trust value: ~$10
• Current Price: $11.85 (units)