The firm bought back nearly 100,000 shares to boost shareholder exposure to bitcoin without acquiring additional BTC amid a 50% stock decline.
OranjeBTC, Brazil’s largest bitcoin treasury company, has repurchased nearly 100,000 ordinary shares between October 27 and 30, in response to its stock trading below net asset value (NAV). The company stated that the move “represents an efficient way to increase shareholder exposure to bitcoin” at a discount — signaling confidence in its long-term strategy despite market headwinds.
OranjeBTC’s Strategic Buyback
According to the company’s filing, 99,600 shares were repurchased during the last week of October, while no new bitcoin was acquired in the same period. OranjeBTC clarified that this action aligns with its previously disclosed share trading policy, emphasizing disciplined capital allocation.
“The repurchase program is designed to maximize bitcoin per share,” the firm said in a statement. “We will continue to evaluate opportunities that enhance shareholder value.”
The decision came as OranjeBTC’s shares dropped nearly 50% since its initial public offering (IPO) on Brazil’s B3 stock exchange, falling from 24 to around 13 Brazilian reais. The company currently holds 3,708 BTC in its treasury and plans to hold off on new bitcoin purchases until after its Q3 results on November 14.
Market Context and Competitor Struggles
The company’s share slump mirrors a broader challenge for bitcoin-linked equities in Brazil. Despite bitcoin’s global resurgence, local investor demand remains muted. Other firms with similar exposure, such as Méliuz, which pivoted toward bitcoin earlier this year, have also seen their stocks lose more than half their value after brief rallies.
Analysts note that competition from ETFs and international bitcoin funds has diluted interest in regional offerings.
“The Brazilian market already offers several direct bitcoin investment vehicles,” said a São Paulo-based analyst. “That makes it harder for companies like OranjeBTC to maintain premium valuations.”
While OranjeBTC’s repurchase program reflects strategic confidence amid volatility, the company’s long-term success may hinge on broader retail participation and institutional appetite for bitcoin-backed stocks in Brazil. For now, the buyback suggests management is betting that the market undervalues its bitcoin exposure — a calculated move to strengthen shareholder returns in a cooling sector.
Disclaimer
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