Brazilian Bitcoin treasury firm OranjeBTC has executed a significant stock buyback, repurchasing 99,600 shares for 1.12 million reals (approximately $1.12 million), instead of expanding its Bitcoin holdings. This move, announced just three weeks after the company went public on the Brazilian stock exchange B3 on October 7, aims to address a discrepancy between its share price and the net value of its Bitcoin assets, which were trading below net asset value (NAV).
OranjeBTC, led by founder Guilherme Gomes and board member Eric Weiss, holds 3,708 BTC worth $408.3 million. The company stated that it will continue to evaluate capital allocation opportunities to maximize Bitcoin per share (BTC/Share) for shareholders, either through direct Bitcoin purchases or share repurchases when shares trade at a discount to mNAV. Eric Weiss emphasized, "Our goal is to align the market perception of our company with the intrinsic value of our bitcoin holdings as we navigate through the capital markets."
The strategy mirrors that of MicroStrategy, which pioneered Bitcoin treasury management in 2020 and now holds over 640,000 BTC. This shift comes as Bitcoin's price remains 13% below its all-time high of $126,080, recently trading at $109,834, and reflects broader trends in cryptocurrency investment strategies. While the buyback prioritizes stockholder value and could bolster investor trust, it raises questions about its impact on Bitcoin demand and treasury models in emerging markets like Brazil, Latin America's largest digital asset economy.
MIM
LTC
ETH
ZK