Compass Investments

Schiff laid out on Platform X: “Why buy more bitcoins if your stock is quoted below book value (NAV)? It’s smarter to just put all that money into buying shares at a discount. It’s a less expensive way to get bitcoins than paying full market price.

Pompliano countered that regulatory limits on share repurchases based on prior trading volume are deterring ProCap from actively repurchasing shares.

We have tried to maximize our daily repurchase volume, but over the last ten days it has not exceeded one million shares, Pompliano said.

regulatory guidelines dictate a dual strategy. ProCap is both buying bitcoin to reduce average costs and buying back its shares when the market undervalues them. “Both steps benefit our shareholders, Pompliano emphasized.

ProCap added 450 bitcoins to its holdings, bringing its total holdings to 5,457 BTC. This acquisition made ProCap the 19th largest public bitcoin custodian and lowered the average price per coin.

Over the past ten days, ProCap bought back 782,408 of its own securities at a significant discount to its net asset value.

The company reported that the discount to NAV narrowed during this period, indicating the success of the initial phase of the program.

ProCap plans to continue repurchasing shares as long as BRR is trading at a significant discount to NAV.

ProCap has 82,640,367 shares of common stock outstanding. The repurchase of 782,408 units represents less than 1% of the total, which clearly demonstrates the limitation mentioned by Pompliano.

BRR gained 7% to break above the upper Bollinger Band at $2.88, a typical sign of increased volatility that often precedes a sustained trend.

The Bollinger Bands are showing a strong compression, with the upper boundary at $2.88, the middle boundary at $2.43, and the lower boundary at $1.98.

BRR is challenging the 20-day exponential moving average (EMA) at $2.63, exceeding it with an intraday move. A daily close above the 20-day EMA would be the first solid confirmation that the downtrend has been overcome. The next resistance level will be the 50 EMA at $3.43.

The securities have been consolidating in the range of $2.30-$2.80 for several weeks, forming a base from which today’s growth is trying to break out.