As the crypto market slumps, activist hedge fund Glazer Capital has amassed a 7.7% position in the SPAC taking ProCap public, setting the stage for a fight over the terms of Anthony Pompliano’s bitcoin DAT. Specifically, the company revealed a 7.7% stake (1,989,461.00 shares) in the SPAC, which is set to merge next month with ProCap Financial Inc to form the new entity.
In its SEC filing today, the company suggested that major changes will be needed to position itself for future success. “The Reporting Persons do not believe that the proposed business combination between the Issuer and ProCap BTC (the “Target”), as currently structured, is in the best interests of public shareholders.”
The specific remedies being suggested for now begin with a renegotiation of the compensation packages offered to company executives and key sponsors, known as the “promote.”
“The Reporting Persons have communicated to the Target that one potential path to improving the alignment of interests among all stakeholders includes materially reducing the Sponsor’s promote shares and certain transaction-related fees, with a view toward redistributing a portion of such economics to (i) a pool allocated to public shareholders who elect not to redeem their shares in connection with the proposed business combination, and (ii) the preferred stockholders. The Reporting Persons believe that exploring such a reallocation framework could enhance the attractiveness of the proposed business combination, improve capital structure stability, and create a more balanced outcome for public and preferred investors.”
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