ProCap Financial ($BRR) is being added to the Russell 2000 and Russell 3000 indexes at the market open on Monday. Being added to an index means there will be some non-discretionary buying as anyone running an index fund or a closet index fund benchmarked to the Russell indexes will have to buy a small amount of $BRR stock.
The press release discloses some additional information. Assets being tracked by Silvia, the company’s AI financial advisor, have risen to $60B. That’s a 20% increase from the $50B disclosed last month. In addition, 25% of monthly active users are now converting to the paid version of Silvia. That was 15% a couple of months ago when I began my research on the company. Please note that this is an incredible and unsustainable number. The 25% conversion rate indicates that people using Silvia for just a few questions are willing to pay a monthly fee to get greater access. As Silvia grows its user base, I expect that conversion rate to fall; not because the product isn’t good, but rather because 25% isn’t sustainable. I mention this because when the conversion rate declines, it won’t necessarily be a signal to sell the stock.
In other news, on Tuesday, the company will be renamed Silvia, Inc. and trade under the new ticker $SVIA. Shareholders do not need to do anything. When the change takes place, you will no longer see ProCap Financial ($BRR) and will see Silvia, Inc. ($SVIA) when you check your brokerage statement.
The stock is up in pre-market trading and has doubled from when DKI made its initial purchase last month. We congratulate the Silvia team lead by Anthony Pompliano and thank the DKI Board member who suggested looking at the company.
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