Anthony Pompliano-Led Silvia Buys Back Shares After SVIA Stock Falls Below NAV

ProCap Financial renamed itself as Silvia and started trading with its new name and ticker on Tuesday.

• SVIA shares fell on Wednesday, putting the stock below the value of Silvia's Bitcoin holdings. 
• Silvia bought back another 2.3% of its shares, taking total repurchases to about 14.5%.
• Based on 5,130 BTC and 82.9 million shares, the bitcoin-backed NAV was around $4.27 per share, whereas SVIA traded around $3.90, representing an 11% discount to NAV.

Shares of Anthony Pompliano-led Silvia, Inc. (SVIA) fell in mid-day trade on Wednesday, pushing the stock further below the value of the company's Bitcoin holdings, after the company renamed itself, and shared that it had bought back around 2.3% of its shares.

The Nasdaq-listed firm, formerly ProCap Financial, renamed itself and launched on Tuesday. The firm said in total it has bought back 14.5% of its common stock since last week, according to a statement. 

The buycack program began in December of last year where it mandated that it will allow buyback of $100 million in stock. The company bought 148,241 shares at about a 35% discount to net asset value (NAV), according to its February press release filed with the Securities and Exchange Commission (SEC). Silvia said it now bought the shares at a discount to NAV.

Buyback Tied To NAV Gap

Silvia said the company will continue repurchasing shares if they trade below NAV. By the end of the trading session on September 22, the company held about 5,130 Bitcoin (BTC) and had 82.9 million shares outstanding, meaning NAV was about $4.27 per share.

SVIA’s price fell over 19% in mid-day trade on Wednesday. However, the stock has gained over 22% so far this year. 

Zero Value For Agentic Business

Silvia claims to be the first agentic finance firm listed on the stock market. Its net asset value involves only Bitcoin and net assets. The firm emphasizes that it assigns zero value to its agentic finance business, meaning any value from its products can significantly contribute to its NAV.

The discount suggests the market sees most of Silvia's value coming from its Bitcoin holdings. Share repurchases at the prevailing NAV increase the claims of the remaining shares, but this only works if the two figures converge.

Bitcoin’s price was trading at $83,800, down 3% in the last 24 hours. On Stocktwits, BTC was one of the top trending tickers.

Retail sentiment around BTC remained in the ‘bullish’ zone, accompanied by ‘normal’ chatter levels over the past day.

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