OranjeBTC, Brazil’s largest bitcoin treasury firm, bought back 99,600 of its own shares and announced that it will delay additional BTC purchases.
The move comes as it attempts to close the gap between its market price and the net asset value (NAV) of its bitcoin holdings. The company spent 1.12 million reais (about $220,000) in the buyback operation.
OranjeBTC, which recently listed on Brazil’s B3 exchange through a reverse merger with Intergraus, holds 3,708 bitcoins, worth approximately $409 million at current prices.
It joins a growing number of digital asset treasury (DAT) companies with large cryptocurrency holdings that are leaning on buybacks while their prices remain in discount territory.
ETHZilla (ETHZ), for example, recently sold $40 million worth of ETH to buy back 600,000 shares under a $250 million repurchase plan, after its market-to-NAV (mNAV) ratio fell to 0.62.
Similarly, Tokyo-listed Metaplanet (3350) committed 75 billion yen (about $500 million) to buybacks funded by a bitcoin-backed credit facility after its mNAV fell to 0.88. Sequans and Empery Digital have taken similar steps, moving BTC or expanding debt facilities to execute buybacks.
Metaplanet shares are down about 6% since the buyback was announced, while ETHZilla shares are down more than 4%. Similarly, Sequans shares have fallen more than 20% since the buyback announcement, while Empery Digital saw an 8% drop.
OranjeBTC shares on Brazil’s B3 exchange closed up 0.3% in yesterday’s trading session.
