ProCap Financial sold 50 Bitcoin and bought back 2% of its stock. The company says they repurchased the stock at a 40% discount to NAV. I had the discount slightly lower. The difference is probably due to the treatment of the warrants, but either way, these moves are highly value accretive to shareholders. The stock is up 42% from where DKI recommended it less than one month ago.
With the recent run-up in $BRR’s price, partially offset by the increase in the price of Bitcoin, I’m calculating the current discount to NAV at 30%. Another way to phrase that is you’re paying negative 30% for this management team to succeed. While it’s too early to draw conclusions about the long-term outlook for CFO Silvia, early results are impressive. In addition, this management team is as shareholder-friendly as they get. Many management teams focus on growth at any cost. This one just created value for shareholders while reducing the size of the company. With the price increase, this has become a large position for me. I haven’t sold a single share.
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