Last week, I sold 2% $BRR (now $SVIA) and bought 2% of $IBIT. The reason was $SVIA had gone from trading at a 33% discount to NAV to a 0% discount. That, combined with the increase in the stock price meant I had a 10% position in a start-up VC company (CFO Silvia) without the big discount. I reduced my position as risk control and bought back $IBIT to maintain my exposure to Bitcoin.

Yesterday, $SVIA (previously $BRR) stock fell 30% at the open and the discount to NAV widened to 16%. I reversed the above trade buying 2% more of $SVIA and selling 2% of $IBIT. That trade netted me a 35bp profit in two days.

Today, $SVIA traded up while Bitcoin and $IBIT traded down. The 16% discount to NAV from yesterday’s trade had gone to positive 1%. So, I reversed the trade again. I just sold 2% $SVIA and bought back $IBIT netting an additional 35bp in a day.

To the best of my knowledge, there is nothing wrong at $SVIA. The company is well-run by a shareholder-oriented management team. Recent reported metrics indicate excellent growth and monetization. I am simply reducing exposure to an idea that has become a very large position. The stock is up 140% since initial purchase last month so a little trimming is normal risk control and not evidence of a problem.

Given the incredible volatility of the past few days in both the $SVIA stock price and the discount to NAV, I was able to grab an additional 70bp of return.

As always, IR@DeepKnowledgeInvesting.com if you have questions.

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