OranjeBTC, the largest Brazilian bitcoin treasury company ( BTC) has made strategic moves to increase its BTC per share exposure without acquiring more BTC.

According to local media, the company repurchased 99.6K ordinary shares between October 27 and 30, and did not purchase any BTC during the period.

The reason behind the move, OranjeBTC explains, is that because of the low value of the stock, its outstanding shares were trading below its net asset value (NAV), representing a discount and a purchase opportunity.

Regarding this move, the company stated that it was “in line with the trading policy with own shares previously disclosed to the market and represents an efficient way to increase shareholder exposure to bitcoin.”

“The company will continue to evaluate capital allocation opportunities in a disciplined manner, always prioritizing the maximization of the bitcoin per share,” it concluded.

Since its initial public offering (IPO) on Brazil’s B3, OranjeBTC shares have plunged from 24 to nearly 13 Brazilian reales, shedding close to 50%.

The company, which currently holds 3,708 BTC in its treasury, also pointed out that it would not purchase more bitcoin until the disclosure of its Q3 results on November 14.

The reception that the Brazilian market is giving OranjeBTC shows the difficulties of launching a BTC in a market that is already crowded with offerings linked directly to bitcoin’s performance, like exchange-traded funds (ETFs) and similar companies.

OranjeBTC is not the only BTC is Brazil suffering from a stock slump. Meliuz, a cashback company that also made a pivot towards bitcoin earlier this year, is also facing the same performance problems.

Meliuz’s share prices jumped as high as 10.54 reales after the announcement of its bitcoin move, and now trade at less than half.

The future of regional BTCs is still uncertain, given the globalization of capital markets and the existence of more investment options tied to BTC directly. At least until now, the BTC phenomenon has failed to raise significant attention in Brazil, with the two companies adopting this idea facing similar issues.

• What recent actions has OranjeBTC taken to increase its BTC exposure?
  OranjeBTC repurchased 99.6K ordinary shares between October 27 and 30, aiming to increase its Bitcoin per share exposure without acquiring more BTC.

• Why did OranjeBTC choose to repurchase its shares instead of buying Bitcoin?
  The company noted that its outstanding shares were trading below their net asset value (NAV), presenting an opportunity to repurchase at a discount.

• What is the current status of OranjeBTC’s shares since its IPO?
  Since its IPO on Brazil’s B3, OranjeBTC shares have declined significantly from 24 to nearly 13 Brazilian reais, losing close to 50% of their value.

• What challenges do Bitcoin treasury companies like OranjeBTC face in Brazil?
  The Brazilian market presents difficulties for OranjeBTC and similar companies, as the BTC investment phenomenon has struggled to gain traction amid a crowded field of competing offerings.

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