Pompliano would lead a group called ProCapBTC under the terms of the deal under discussion, the people said. ProCapBTC would then look to raise $500mn in equity and $250mn in convertible debt as part of a merger with Columbus Circle Capital 1, a publicly traded blank cheque vehicle backed by New York boutique investment bank Cohen & Company.

A longtime advocate of cryptocurrencies who is prolific on social media, Pompliano recently raised $220mn for his own, separate blank cheque vehicle, which is not involved in the crypto-buying deal.