ProCap Financial, a Nasdaq-listed company, sold about 50 BTC and repurchased more than 2% of its common stock while shares traded roughly 40% below net asset value. The strategy has now retired approximately 10% of outstanding shares since the buyback program began.
As of September 2, ProCap reported about 5,305 BTC and 86.8 million shares outstanding, down from 5,355 BTC and 88.6 million shares at the end of June. The Bitcoin balance declined 0.9% while the share count fell roughly 2%, resulting in a 1.1% increase in Bitcoin per share.
ProCap calculated net asset value at approximately $3.71 per share as of September 2, while shares closed at $2.31, representing a discount of roughly 38%. According to company leadership, this discount creates an unusual economic opportunity where selling Bitcoin to retire undervalued shares can increase the Bitcoin backing each remaining share.
Anthony Pompliano, ProCap's chairman and chief executive, stated the company intends to continue repurchasing shares while they trade significantly below NAV.
The approach reverses the typical strategy used by Bitcoin treasury companies, which generally issue stock when shares trade at a premium to accumulate additional Bitcoin. For ProCap, the economics of the trade shift when its stock trades well below the value of underlying assets.
ProCap employed the same approach in June, selling approximately 52 BTC and repurchasing two million shares at an estimated 50% discount to NAV. The company reported $84.4 million remaining under its $100 million buyback authorization as of June 30, though further purchases remain discretionary.
The company's ability to repeat this strategy depends on liquidity. ProCap reported $15.3 million in cash at June 30, along with $99.6 million of convertible-note principal and a $77.3 million working-capital deficit.
