AI and cryptocurrency firm ProCap Financial has begun its share buyback program after it previously said it would be expanding into AI, as per an announcement on Monday.
Share buybacks are carried out routinely by companies and are usually meant for the purpose of preserving equity to maintain autonomy or to compensate investors with excess cash who have longstanding equity within the company.
Buybacks also boost the EPS of a company if it has revenues to declare, and in some cases, can boost share value due to an increase in the scarcity of shares.
In this case, ProCap Financial said it would be buying its shares back while it was still trading at a discount to NAVs—a metric now in prevalent use among cryptocurrency treasury firms to determine the value of an investment.
CEO of ProCap Financial, Anthony Pompliano, said that the company would be buying shares as the share price is trading lower than NAV, implying that the stock is undervalued.
NAV was estimated at $3.65 while ProCap Financial’s current share price was $2.35, at the time of writing.
The firm continues to hold bitcoin as part of its core business of cryptocurrency treasury management, with holdings of 5007 BTC, convertible debt of $100 million, NAV of $305 million, and cash of $70 million.
While ProCap Financial continues to hold its Bitcoin, the price of the largest market-cap crypto has been deflated for some time now, crashing from an all-time high of $126,210 in October last year, now trading at roughly $66,000.
On February 10th, ProCap Financial announced that it would be acquiring CFO Silvia, a company specializing in AI agents that cater to clientele with a strong wealth profile, expanding its business beyond just BTC treasuries into AI.