Brazilian Bitcoin Treasury OranjeBTC Buys Back Stock Instead of BTC

Brazil’s largest Bitcoin Treasury’s OranjeBTC has stopped purchasing BTC and instead bought back its own shares, the listed company announced on Thursday, just three weeks after going public.

Orange BTC said The company will consider future options. Companies may buy back their stock as a way to increase the value of their stock by removing it from the market and reducing its supply.

This movement is done as follows bitcoin price It remains 13% below its all-time high of $126,080 hit earlier this month, according to crypto data provider CoinGecko. The leading cryptocurrency was recently trading at $109,834 after an eventful two weeks.

“We continue to evaluate capital allocation opportunities in a disciplined manner. Our priority is always to maximize Bitcoin per share (BTC/share) for our shareholders. Through direct Bitcoin purchases or share buybacks, It trades at a discount to mNAV,” the company said on its website.

OranjeBTC’s move comes as the company’s stock is trading below its net asset value. This represents a discount to the value of the stock. It also comes as some Treasury watchdogs have expressed concerns about the technique as a way to boost the stock prices of distressed companies when asset values ​​have fallen, as they have recently.

OranjeBTC, which has been trading on the Brazilian Stock Exchange B3 since October 7, holds 3,708 BTC worth $408.3 million, according to its website.

The company is a direct competitor to fintech company Melius, which earlier this year billed itself as South America’s first Bitcoin treasury company.

Bitcoin government bonds provide exposure to the asset for investors concerned about the safety and other challenges of holding Bitcoin.

american software company strategyAccording to the company, formerly MicroStrategy, which pioneered the strategy in 2020, it currently holds 640,808 Bitcoins worth approximately $70.5 billion based on current prices. bitcointresuries.net data. The company’s stock price has soared more than 1,400% over the past five years.

Many other Nasdaq-listed companies in the U.S. are following suit and changing their business models to focus on accumulating cryptocurrencies, buying not only Bitcoin but also other digital coins such as Ethereum and Solana. These include Japanese hotel operator Metaplanet, which has built the world’s fourth-largest BTC stockpile, as well as mining company BitMine Immersion and online marketing company SharpLink Gaming, which have created massive ETH vaults.

Brazil, Latin America’s largest economy, is the region’s largest digital asset market and holds the most crypto ETFs.

In Myriad Prediction Market, 54% of respondents agree with crypto trader Mando that Bitcoin will reach $120,000, rather than siding with entrepreneur KBM, who believes BTC will fall to $100,000. Myriad is a division of Dastan, Dastan’s parent company. Decrypt.