Brazilian firm OranjeBTC has repurchased shares and paused further Bitcoin acquisitions, joining a growing trend among crypto treasury companies using buybacks to counter market valuation discounts and shore up investor confidence.
The company, Brazil’s largest Bitcoin treasury firm, spent USD $220,000 to buy back 99,600 of its own shares. The move aims to align its market value with the net asset value (NAV) of its substantial Bitcoin holdings.
OranjeBTC currently holds 3,708 Bitcoins, valued at approximately USD $409 million. The firm recently began trading on Brazil’s B3 stock exchange following a reverse merger.
This buyback strategy reflects efforts to protect shareholder value when market prices for crypto-backed firms fall below their actual asset value. This valuation gap often signals lower market confidence in the underlying digital assets.
Other major crypto-backed firms have implemented similar strategies, though with largely negative market outcomes. Japan’s Metaplanet allocated USD $500 million for buybacks after its market-to-NAV ratio (mNAV) fell to 0.88. Its shares have since dropped around 6%.
Ethereum treasury firm ETHZilla sold USD $40 million in Ethereum to fund a buyback program. Its shares declined more than 4% following the announcement. Sequans and Empery Digital also saw their shares fall significantly after similar actions.
In contrast, OranjeBTC’s shares gained 0.3% on Brazil’s B3 exchange following its announcement. This suggests a more favorable initial market response from investors.
Digital Asset Treasuries (DATs) have gained traction, offering investors indirect exposure to cryptocurrencies through publicly listed shares. These firms often face challenges from market volatility and regulatory pressures.
These pressures frequently cause their shares to trade below the actual value of their digital assets. Share buybacks have become a common tool to stabilize investor perception without divesting from core crypto holdings.
OranjeBTC’s decision to pause further Bitcoin acquisitions highlights a cautious approach. This comes amid broader market consolidation for Bitcoin and Ethereum.