Brazilian Bitcoin Treasury OranjeBTC Buys Back Stock Instead of BTC

Core Insights - OranjeBTC, Brazil's largest Bitcoin treasury, has ceased purchasing Bitcoin and opted to buy back its own shares shortly after going public [1] - The decision comes as Bitcoin's price is currently 13% below its all-time high of $126,080, trading at $109,834 [2] - The company aims to maximize Bitcoin per share for its shareholders through disciplined capital allocation, considering both direct Bitcoin purchases and share repurchases when trading at a discount [3] Company Actions - OranjeBTC's share buyback is a response to its shares trading below net asset value, indicating a discount to equity value [4] - The company holds 3,708 BTC, valued at $408.3 million [4] - The buyback strategy has raised concerns among treasury observers regarding its effectiveness in boosting stock prices amid declining asset values [4] Industry Context - OranjeBTC competes with fintech company Méliuz, which claims to be South America's first Bitcoin treasury company [5] - The strategy of accumulating Bitcoin has been successfully pioneered by American software firm Strategy, which holds 640,808 Bitcoins worth approximately $70.5 billion [6] - Other Nasdaq-listed companies are also shifting their business models to focus on crypto accumulation, including firms like Metaplanet and BitMine Immersion [7] Market Outlook - Brazil is recognized as Latin America's largest digital asset market, with the highest number of crypto ETFs [8] - A prediction market indicates that 54% of respondents believe Bitcoin will reach $120,000, while a minority expects it to drop to $100,000 [8]