Silvia repurchases 2.3% of shares below stated NAV
Cumulative repurchases reached about 14.5 per cent of the original share base; Silvia did not disclose what the latest purchases cost.
Julian Okafor
Buying shares below stated asset value can increase each remaining holder's claim on a bitcoin treasury, if the valuation holds. Silvia, Inc. NASDAQSVIA, the Nasdaq bitcoin holder and finance AI company formerly called ProCap Financial, said on Sept. 23 it repurchased an additional 2.3 per cent of its common stock since Sept. 15. Purchases since the program began now equal approximately 14.5 per cent of the shares outstanding at its inception.
At 2:54 p.m. EDT on Sept. 23, Silvia shares NASDAQSVIA traded at US$4.04. At that time on Sept. 23, the NASDAQSVIA quote showed a 13.41 per cent decline from the US$4.66 previous close. At 2:54 p.m. EDT on Sept. 23, the NASDAQSVIA quote showed volume of 4.09 million shares. Average daily volume was about 130,000 shares in the same NASDAQSVIA quote at 2:54 p.m. EDT on Sept. 23.
The company reported about 5,130 bitcoin and 82,881,223 shares outstanding at the Sept. 22 market close. It put net asset value, or NAV, at approximately US$4.27 a share on that date. Silvia says the calculation includes its bitcoin and other net assets while assigning zero value to its finance AI business.
At 2:54 p.m. EDT on Sept. 23, the NASDAQSVIA quote remained below Silvia's Sept. 22 NAV figure. The gap at that time was US$0.23 per share. This comparison spans trading days because bitcoin prices and other balance-sheet items can change. The Sept. 23 release did not disclose the latest purchases' share count, dollar cost or average price.
The Buyback Reached 14.5 Per Cent of Its Starting Share Count
A buyback below NAV can raise NAV per surviving share because the company retires shares for less than the assets attributed to each one. Corporate assets also fall by the amount paid. Silvia disclosed neither the prices at which the latest shares were acquired nor how much of its assets funded them, so the Sept. 23 release does not establish a dollar amount of accretion.
The notice says Silvia will keep repurchasing while shares trade below its calculated NAV. It gives no remaining authorization amount or expiry date, leaving holders unable to measure how much more stock the program can absorb from that document. Its Sept. 22 share count describes a point in time, while the cumulative 14.5 per cent uses the program's original share base.
The stock began trading as SVIA on Sept. 22 after the company changed its name from ProCap Financial. Silvia said the legal entity, management and contractual obligations stayed the same. That continuity means the buyback disclosed this week includes transactions from before the new ticker appeared.
Silvia Values Its Finance AI Business at Zero in NAV
Silvia's calculation deliberately assigns no value to its finance AI platform, a choice described in its Sept. 23 release. That makes the US$4.27 figure a balance-sheet measure rather than a valuation of every part of the company. The release provides the total per-share figure but no asset-by-asset bridge to its bitcoin position, other net assets or liabilities.
"More than 20,000 wealthy, self-directed investors have connected over $60 billion in assets to the platform," Silvia chairman and chief executive Anthony Pompliano said in the company's Sept. 17 release.
The US$60 billion figure measures portfolios connected by platform users, according to Silvia's Sept. 17 description. The company did not say how much revenue those users generated. Silvia's Sept. 22 treasury count, by comparison, was about 5,130 bitcoin.
At Silvia's Sept. 22 holdings and share count, a US$1,000 change in bitcoin's price would change the gross value of its reported coins by approximately US$5.13 million. That is about US$0.06 per share before other assets and obligations. The estimate uses the dated coin count; an updated NAV would require current values for every balance-sheet item. It shows why a fixed Sept. 22 NAV becomes a less reliable yardstick as the coin price moves.
The same sector is making a different allocation choice: Strategy Inc. NASDAQMSTR, the bitcoin treasury company, reported on Sept. 21 that it bought 950 bitcoin during Sept. 14 to 20. Mugglehead's earlier report on Strategy's resumed purchases followed that disclosure. Silvia has disclosed repurchasing its stock, which reduces the share denominator. A fuller issuer disclosure would need to give the price and quantity retired to measure the effect per share.
Read more: Strategy resumes bitcoin buying with 950 BTC after a two week pause
The next dated market test is the Nasdaq close on Sept. 23, when Silvia's closing price can be measured against its Sept. 22 US$4.27 NAV. Whether the latest purchases added value per surviving share awaits the price and quantity of stock bought, which Silvia did not provide in its Sept. 23 statement.
