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Sujha Sundararajan

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Sujha Sundararajan

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Sujha has been recognised as Women In Crypto 2024 by BeInCrypto for her leadership in crypto journalism.

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Last updated: 

June 24, 2025

American investor and entrepreneur Anthony Pompliano announced a $1 billion business merger to create a Bitcoin-native firm, ProCap Financial. The company has raised $750 million “from some of the leading institutional investors on Wall Street,” Pompliano posted on X.

“The company will be a publicly traded entity on Nasdaq,” said Pompliano through a special purpose acquisition company, or SPAC, with Columbus Circle Capital Corp.

“As part of the business combination, I have raised over $750 million, which is the largest initial fundraise in history for a publicly-traded bitcoin treasury company.”

ProCap to Acquire Bitcoin – BTC Treasury Firms Are on The Rise

Pompliano stated that ProCap will strategically acquire Bitcoin and generate revenue and profits from its BTC holdings.

Per the official announcement, ProCap Financial will hold up to $1 billion in Bitcoin on its balance sheet. It will offer services including trading, lending and capital markets, all denominated in Bitcoin.

Further, the $750 million funding includes $235 million in convertible debt, with the remaining amount comprising equity.

“It is time to get to work,” said podcast host Pompliano. In a reply to Strategy’s CEO, Michael Saylor, he said, “Your idea is spreading globally as people realize the value of Bitcoin.”

Indeed, inspired by Strategy (previously MicroStrategy), which currently holds 592,345, after adding 245 Bitcoins on Monday, several public companies are turning into Bitcoin proxies.

Intersection of Bitcoin and Traditional Finance

However, according to Pompliano, ProCap is pushing beyond that model. He said that the company would build a financial services platform on top of it, besides accumulating Bitcoin.

“Our objective is to develop a platform that will not only acquire bitcoin for our balance sheet, but will also implement risk-mitigated solutions to generate revenue and profits from our bitcoin holdings,” he said.

Additionally, equity investors will have immediate exposure from day one, the announcement added.

“ProCap Financial aims to become the leading financial services firm at the intersection of bitcoin and traditional finance.”

Pompliano told CNBC that the goal is to look and feel like a traditional financial institution, which resonates very differently with capital allocators.

The number of Bitcoin-native startups receiving venture capital investment increased in 2024 despite a decline in the total capital allocated to the sector, according to a new report published by Trammell Venture Partners (TVP).

The report highlighted that the number of unique Bitcoin-native companies funded rose 27.5% on a yearly basis, while the number of individual transactions grew 31.8%. 

At the same time, the total amount of capital raised across those deals fell 22.1% compared to 2023, totaling $234 million for the year. 

The report focused on early-stage Bitcoin-native software startups, excluding mining operations and atypically large or late-stage funding rounds.

TVP defined a “Bitcoin-native” company as one founded on the principle that Bitcoin serves as a foundational global monetary asset and digital cash, with business models aligned to the Bitcoin protocol stack. 

This emerging category includes startups building infrastructure, applications, and services that leverage the base Bitcoin network or related layers.

Growth in pre-seed and early-stage investments

The increase in deal count was driven by heightened activity in earlier-stage funding rounds. Pre-seed transactions grew by 50%, while seed-stage deals rose by 30%. 

Series A transactions also saw a notable 60% increase year over year. This suggests growing interest among investors in backing Bitcoin-native companies from their earliest phases of development despite broader market caution in crypto venture capital.

The divergence between the increased startup funding and lower capital allocation indicates a shift in market trends. Venture firms are spreading investments across a wider range of early-stage companies, potentially favoring leaner rounds and valuation discipline over large, concentrated bets.

According to the report, the median round sizes remained stable across funding stages, though the aggregate capital raised dropped from $301 million in 2023 to $234 million in 2024.

Pre-seed Bitcoin-native transactions increased by more than sevenfold over the four years from 2021 to 2024. 

The consistent rise in early-stage deal activity positions Bitcoin-native startups as a distinct and increasingly active segment within the broader crypto investment landscape.

Small but growing

Although Bitcoin-native startups remain a small portion of the total venture capital funding in the market, they have shown relatively higher momentum. 

According to TVP, these startups represented 5.98% of overall crypto venture capital invested in 2024 and 2.34% of all venture-backed crypto deal counts. 

This compares to Bitcoin’s massive share of the total crypto market cap, which currently stands above 62%. The disparity highlights a continued gap between Bitcoin’s market dominance and its representation in startup investment flows.

TVP argued that the Bitcoin-native sector is entering a breakout phase, with four consecutive years of growth across key investment metrics. 

The report also highlighted that Bitcoin-aligned entrepreneurs are increasingly attracting the interest of prominent investors, including Founders Fund, Ribbit Capital, Accomplice, Valor Equity Partners, Boost VC, Plug and Play, Village Global, GSR Ventures, and Y Combinator. All of these investment funds participated in syndicates for Bitcoin-native deals in 2024.

While overall venture capital allocations to crypto have contracted over the past two years, the Bitcoin-native segment has demonstrated resilience through consistent growth in startup formation and early-stage capital access.

The number of Bitcoin-native startups receiving funding increased in 2024 even as the total capital raised fell, reflecting rising investor interest in the category and a shift toward earlier-stage participation.

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