Peter Schiff To Pompliano: 'Why Buy More Bitcoin?-Just Buy Your Discounted Shares'
ProCap Financial (NASDAQ:BRR) surged 7% after buying 450 Bitcoin (CRYPTO: BTC) and repurchasing 782,408 shares, as Peter Schiff questioned CEO Anthony Pompliano why he’s buying Bitcoin instead of just buying discounted shares.
The Schiff Challenge
Schiff posted on X: “Why buy any more Bitcoin while your shares trade at a discount to NAV? It makes more sense to just use all of that money to buy discounted shares. That’s a cheaper way to buy Bitcoin than paying full price in the market.”
Pompliano responded that regulatory limits on share repurchases based on prior trading volume constrain how aggressively ProCap can buy back stock.
“We have been trying to max out the full amount of share repurchases we are allowed each day, but it was less than 1 million shares total over the last 10 days,” Pompliano said.
The regulatory constraint creates a dual strategy. ProCap is simultaneously buying Bitcoin to average down its cost basis while repurchasing shares when the market misprices them. “Both actions are accretive to our shareholders,” Pompliano said.
The 450 BTC Purchase
ProCap acquired 450 Bitcoin, lifting total holdings to 5,457 BTC. The purchase makes ProCap the 19th largest publicly traded Bitcoin holder while lowering the company’s average cost basis per coin.
Over the past 10 days, ProCap repurchased 782,408 shares at a significant discount to net asset value.
The company said the NAV discount has narrowed during that period, reflecting the program’s early success.
ProCap intends to continue buybacks as long as BRR trades at a significant discount to NAV.
ProCap has 82,640,367 total basic shares outstanding. The 782,408 share repurchase represents less than 1% of shares outstanding, illustrating the constraint Pompliano described.
ProCap Stock Breaks Above Bollinger Band
BRR is up 7%, breaking above the upper Bollinger Band at $2.88—a classic sign of expanding volatility that typically precedes extended moves.
The Bollinger Bands show extreme compression with the upper band at $2.88, middle band at $2.43, and lower band at $1.98.
BRR challenges the 20 EMA at $2.63, pushing above it intraday. A daily close above the 20 EMA would be the first major confirmation the downtrend is breaking. The 50 EMA sits at $3.43 as next resistance.
The stock consolidated in the $2.30-$2.80 range for several weeks, forming a base pattern that today’s rally attempts to break out from.
Critical resistance sits at the upper Bollinger Band at $2.88 and $3.43. Support sits at the middle Bollinger Band at $2.43.
Image source: Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ripple Partner Reaches One Million People With Safe Water
NASDAQ TRADE HALT CONTINUES <UCFIW.O> REASON NOT AVAILABLE AT 03:58 AM
VIPCross-Asset Positioning Amid AI Earnings Scrutiny and the US Election
1. Markets diverged during the week. Between the October 23 and October 30 closes, BTC fell 4.78%, the Nasdaq 100 declined 1.98%, and gold and silver dropped 2.72% and 8.59%, respectively. The DAX, KOSPI, Nikkei 225 and Hang Seng advanced. We focus on differences in growth prospects, valuation sensitivity and risk exposures rather than applying a single directional view across assets. 2. Market reactions to Alphabet's and Intel's earnings brought returns on AI investment into focus. Attention is shifting from the scale of capital expenditure to revenue realization, margins and free cash flow. Lower interest rates can ease discount-rate pressure, but a sustained valuation recovery still requires support from both operating performance and financing conditions. 3. The November 3 US midterm elections and November 6 employment report are key events in the coming week. We monitor how post-election fiscal and legislative agendas may affect interest rates, the dollar and industry operating conditions. Our execution priorities are to manage leverage and concentration, retain margin and exit-liquidity buffers, and avoid treating a single political outcome as an automatic trading signal. 4. Following Binance's disclosure of a security incident, industry attention to endpoint protection, access segregation and coordinated incident response has increased. Key assets to monitor: BTC, the Nasdaq 100, crude oil and gold, alongside upcoming earnings from AAPL, AMD, PLTR, ARM, ANET and QCOM.
HYATT HOTELS CORP <H.N>: JEFFERIES RAISES TARGET PRICE TO $188 FROM $167
Crypto prices
More
