I Just Made A Historic Decision at ProCap Financial (Ticker: BRR)

To investors, I believe retail investors are wildly underestimated. Today they are responsible for more than 30% of the stock market, but that share will likely grow to more than 50% over the coming years. Wall Street previously thought of retail as “dumb money,” but it has become obvious to financial institutions that these individuals are intelligent, sophisticated allocators of capital. They have access to information via the internet, while being able to directly invest in the market thanks to new technology platforms like Robinhood, Public, eToro, etc. But retail investors are still considered second class citizens in public markets. I know this because I consider myself someone who sits at the intersection of retail and institutions. Professional Capital Management, my investment firm, interfaces and transacts with large financial institutions, but I allocate my personal capital in a similar manner to a retail investor. Because of this balancing act, I intimately understand some of the problems that retail investors face. Rather than complain about those problems though, I am working to address them head on with our new company, ProCap Financial (ticker: BRR). First, public companies have moved from ignoring retail investors to merely “listening” to them. That is a good start, but it doesn’t give true representation to the retail investor. True power and influence requires a seat at the table. To address this, ProCap Financial announced that Eric Jackson, one of the leaders of the retail movement, will be joining our Board of Directors. While we obviously can’t have every retail investor involved in every decision, we have chosen Eric to be their representative. This gives retail investors a role in governing the business. Second, CEOs and board of directors at public companies constantly enrich themselves at the expense of retail investors. The retail investors invest their hard-earned money into a company and take on the risk of their capital losing value if the company doesn’t perform. At the same time, CEOs and their boards are still paid large equity compensation packages, regardless of performance. It doesn’t seem right for CEOs and boards of directors to get millions of dollars in personal compensation if they are destroying retail investors’ capital. That is not how true alignment works. To address this issue, today ProCap Financial announced a very unique compensation structure. We believe we are the first public company in capital markets history to adopt a “moonshot” compensation structure, which includes: My annual salary as CEO will be $1 with 100% of my personal equity compensation dependent on the Company achieving significant milestones. My equity compensation does not begin vesting until the Company’s stock price hits $15 per share and continues to vest in $2.50 per share increments until $50 per share. Members of the Board of Directors will take 100% of their equity compensation in a performance-based structure. Each director’s equity compensation begins vesting at $12.50 per share and continues to vest in $2.50 per share increments until $20 per share. The SPAC Sponsor (Columbus Circle I Sponsor Corp LLC) and Professional Capital Management will put 100% of their founding equity in a long-term, performance-oriented structure. This founding equity vests when the stock hits either $10.21 per share, bitcoin’s price hits $140,000 per coin, or certain time milestones are reached. I fundamentally believe a CEO and the Board should be fully aligned with retail investors’ interests. This structure targets some of retail investors’ key concerns in a historic way. No longer will a CEO make millions if retail investors are losing. We’ll only win if our shareholders win. To make the magnitude of this decision even clearer, the BRR stock is currently trading at $5.18 per share as of the close last night. This means I need to create a nearly 300% increase in the stock price before I personally earn the first dollar of equity compensation. That is a tall task, but it is a task that I am excited to tackle. Retail investors are the heartbeat of markets. They drive sentiment. They bring decentralized power to a company. This shows up in the form of new ideas, marketing distribution, and accountability. Retail investors make a public company better. And I am excited to get to work on behalf of all $BRR shareholders. You can read the full press release here: Read the Press Release Hope everyone has a great day. I’ll talk to you tomorrow. - Anthony Pompliano Founder & CEO, Professional Capital Management Bitcoin Drops 40% — Should We Be Worried? Jeff Park is the Partner & Chief Investment Officer at ProCap BTC. 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