Brazil’s largest Bitcoin cash company, OranjeBTC, repurchased 99,600 of its own shares and announced that it would delay additional BTC purchases.
The move comes as it aims 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 (around $220,000) on the buyout operation.
OranjeBTC, recently listed on the Brazilian B3 exchange via 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) firms with large cryptocurrency holdings relying on redemptions while their prices are in thin territory.
ETHZilla (ETHZ), for example, recently sold $40 million worth of ETH to repurchase 600,000 shares as part of a $250 million buyback 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 financed by a bitcoin-backed credit line after its mNAV fell to 0.88. Sequans and Empery Digital have taken similar steps, moving BTC or expanding debt facilities to execute buybacks.
Shares of Metaplanet are down about 6% since the buyout was announced, while shares of ETHZilla are down more than 4%. Similarly, Sequans shares have fallen more than 20% since the buyout was announced, while Emery Digital has seen an 8% decline.
Shares of OranjeBTC on the Brazilian B3 exchange closed up 0.3% during yesterday’s trading session.
