Brazil’s largest bitcoin tax company OranjeBTC has bought back 99,600 of its own shares and announced that it will delay further BTC purchases. Brazil’s OranjeBTC joins the wave of struggling crypto tax companies turning to buybacks
The move comes as it moves to bridge the gap between its market price and the net asset value (NAV) of its bitcoin holdings. The company spent 1.12 million reals (about $220,000) in the buyback operation.
OranjeBTC, which was recently listed on Brazil’s B3 exchange through a reverse merger with Intergraus, has 3,708 bitcoin, worth about $409 million at current prices.
It joins a growing number of digital asset treasury (DAT) companies with large cryptocurrency holdings that are leaning on buybacks while their prices are in bearish territory.
ETHZilla (ETHZ), for example, recently sold $40 million in ETH to buy back 600,000 shares under a $250 million buyback plan after its market-to-NAV ratio (mNAV) fell to 0.62.
Similarly, Tokyo-based Metaplanet (3350) committed 75 billion yen (about $500 million) in buybacks funded by a bitcoin-backed credit line after its mNAV fell to 0.88. Sequans and Empery Digital have taken similar steps, moving BTC or extending debt facilities to complete buybacks.
Metaplanet’s shares are down about 6% since the buyback was announced, while ETHZilla’s shares are down more than 4%. Similarly, Sequans’ shares fell more than 20% since the buyback announcement, while Empery Digital saw an 8% drop.
OranjeBTC’s shares on Brazil’s B3 exchange closed up 0.3% in yesterday’s trading session.
