The deal is interesting as the Columbus Circle SPAC is sponsored by Cohen & Company and managed by Cohen & Company executives. Cohen & Company also serves as the "exclusive financial advisor" for the surviving entity, Procap Financial, and was a "co-placement agent in connection with the Preferred Equity Raise and Convertible Debt Raise."
The greed and leverage boys like to be on all sides of a deal, equity, debt, investment bank, financial advisory. Nothing is arm's length anymore. It's all bear hug. I believe they call it "fee earning synergy."
Peter Thiel, one of the greatest digital, libertarian alchemists, is backing the deal. Rose Park Advisors and Fifth Down Capital. both Boston venture capital firms, invested alongside Thiel Capital.
The combination includes a preferred equity raise and convertible note sale. Firms participating in those include:
Magnetar Capital, Woodline Partners LP, Anson Funds, RK Capital, Off the Chain Capital, Parafi, Blockchain.com, Arrington Capital, BSQ Capital Partners, and FalconX
Procap put that money to work already. The yet to be combined firm bought $387 million worth of Bitcoin.
... the announcement notes that the TWAP for this purchase may differ from the “signing bitcoin price” referenced in the June 23 Business Combination Agreement between CCCM and Procap.
And who gets to pocket that? I assume if it was going to cause a loss then the purchase would not have been made.
It all seems so loose. But that is par for the course under Trump II, the digital Caligula.
