ProCap Financial (Columbus Circle Capital Corp)

Fundraising: Columbus Circle Capital Corp I raises funds by issuing shares to public investors through an initial public offering (IPO). In this process, the company discloses relevant information to potential investors, including the purpose of the company's establishment and the intended use of the raised funds, to attract investors to subscribe for shares. The company leverages its team's background and market influence, as well as the anticipated potential of future acquisition targets, to attract capital inflow in the capital markets. Target Search and Selection: The company forms a professional team dedicated to finding potential unlisted companies as acquisition targets. Team members typically possess extensive experience in finance, investment, industry research, and other areas. They will filter through numerous industries, comprehensively considering factors such as the target company's industry prospects, market position, financial status, technological innovation capabilities, and management team. For example, they may focus on companies with high growth potential in emerging industries or enterprises with unique technologies or market shares in traditional industries. In-depth due diligence is conducted on the selected potential targets to assess the feasibility of their business models, the authenticity of their financial statements, legal compliance, etc., to determine whether they meet the acquisition criteria. Acquisition and Integration: Once a suitable acquisition target is identified, the company will negotiate with the target company to reach an acquisition agreement. The acquisition process involves complex transaction structure design, pricing mechanism determination, and equity delivery, among other aspects. After the acquisition is completed, the company will incorporate the target company into its own system and integrate it in terms of business, finance, and management. In terms of business, adjustments or expansions may be made to the target company's business direction based on the overall strategic plan; in finance, a unified financial accounting and management system will be established; in management, the management team will be optimized or merged to achieve synergies and enhance the overall value of the company.

Listing Financing and Acquisition Premium: By raising funds through an Initial Public Offering (IPO), the company can obtain funds from investors subscribing to its shares for subsequent acquisition activities. When successfully acquiring a private company and enhancing its performance and market valuation through integration, the company can choose to exit the investment through methods such as relisting (the target company going public via a reverse merger) or selling equity, thereby obtaining premium returns between the acquisition price and the exit price. If the company acquires a promising tech startup at a lower price, and after a series of resource integrations and market promotions, the startup's performance significantly increases and its market valuation rises substantially, the company can achieve substantial profits by selling its stake in the startup. Management fees and transaction costs: During the operation process, the company may charge investors a certain management fee to cover the company's operating costs and the expenses incurred by the team in conducting business. Upon completing an acquisition transaction, the company may also receive a certain percentage of transaction fees from the deal, which is usually determined based on the scale and complexity of the transaction. For example, when the company successfully facilitates a larger acquisition transaction, it will extract a certain amount as transaction fees from the transaction amount according to a pre-agreed ratio, thereby increasing the company's revenue.

IPO financing and acquisition premiums: This profit model provides companies with the opportunity to achieve high returns through capital operations. By selecting high-quality unlisted companies for acquisition, it not only helps the target company go public and enter the capital market to gain more development resources, but the company itself can also share in the value appreciation brought about by the target company's growth during this process. This model encourages companies to actively seek potential acquisition targets, enhancing their competitiveness and influence in the investment field. Management fees and transaction costs: Management fees provide a stable source of funding for the company's daily operations, ensuring that the company can continue its business activities, including team operations, market research, and target selection. Transaction costs serve as a reward for the company's successful completion of acquisition transactions, further increasing the company's revenue, while also reflecting the company's professional capabilities and value in capital market transactions.

As a special purpose acquisition company (SPAC), Columbus Circle Capital Corp I primarily operates in dollar-denominated capital markets, and its business activities are closely related to the dollar. Fundraising and Utilization: During the fundraising phase of the Initial Public Offering (IPO), investors subscribe to the company's stock in US dollars, allowing the company to obtain a large amount of US dollar funds. When the company subsequently engages in acquisition activities, it also uses US dollars as the transaction currency. This series of inflows and outflows of funds affects the supply and demand relationship of US dollar funds at the company level. When the company raises funds on a large scale, US dollar funds flow from the market to the company; while during acquisition payments, US dollar funds flow from the company to the target company and related parties. Impact on the Flow of Capital Market Funds: The company's business activities can influence the flow of US dollar funds in the capital market to a certain extent. If the company successfully acquires a popular industry’s unlisted company, it may attract more investors' attention to that industry, thereby guiding more US dollar funds into related fields. The company's investment decisions and acquisition activities play a guiding role in the allocation of US dollar funds among different industries and enterprises in the market. Indirect Impact on the USD Exchange Rate and Financial Markets: Although the scale and business scope of companies may be relatively limited compared to the entire financial market, the capital operations of numerous SPAC-like companies may have a certain indirect impact on the USD exchange rate and the stability of financial markets from a macro perspective. When a large number of SPAC companies concentrate on fundraising and acquisition activities, it may lead to short-term changes in the supply and demand relationship of USD funds, thereby affecting the fluctuations of the USD exchange rate. This change in capital flow may also trigger a chain reaction on interest rates, asset prices, and other aspects of the financial market.