Bitcoin Treasury Company ProCap Stock Price Plummets 85%: Can the Buyback Plan Restore Confidence?

In the context of extreme volatility in the crypto market, even publicly traded companies holding large amounts of digital assets find it difficult to remain unaffected. ProCap Financial (NASDAQ: BRR), a publicly listed Bitcoin treasury company led by well-known crypto investor Anthony Pompliano, is currently facing a severe trust crisis. After its stock plummeted 85% from its all-time high, management launched an active share repurchase program in an attempt to restore investor confidence. This article will analyze ProCap’s predicament, its self-help measures, and its market performance on the Gate platform.

85% Crash: The Darkest Hour After a Glorious Turnaround

As a “Bitcoin treasury company,” ProCap’s core business model is closely tied to Bitcoin’s price. The company’s balance sheet holds a large amount of Bitcoin, whose value should fluctuate with BTC’s price movements. However, the secondary market performance reveals deeper contradictions.

According to market data, BRR closed at $2.42 on February 24. This price is far from its peak—down 85% from its all-time high last year, with a 76% decline over the past six months. Despite Bitcoin’s recent weakness, dropping about 4% in the past 24 hours to $64,888, BRR’s decline far exceeds Bitcoin’s 49% retracement in the same period. This indicates that investor sell-offs of BRR are not solely due to bearish sentiment on Bitcoin but also stem from concerns about the company’s operational model or governance structure.

Net Asset Value (NAV) Discount: The Direct Cause of the Buyback

The stock price collapse has resulted in an unusual financial phenomenon: ProCap’s market capitalization is far below its net asset value (NAV). According to disclosures and media reports, ProCap currently holds 5,007 BTC, worth about $325 million, plus approximately $70 million in cash, minus $100 million in convertible bonds, giving a NAV of roughly $305 million.

However, the company’s market cap is less than $202 million. This means that in the stock market, investors can buy a company with a net asset value of $305 million for less than $202 million. Per share, ProCap’s NAV is about $3.65, while the current stock price is only $2.42, representing an approximate 35% discount.

Anthony Pompliano vividly describes this predicament as: “Last week, we bought a stock worth $1 at about $0.65.” This significant discount is the most direct and compelling reason for the company to initiate a buyback program.

Buyback Program: Management’s Bold Self-Rescue

Facing a trust crisis and an extremely low stock price, ProCap’s management took decisive action. The company announced that last Friday (February 20), it repurchased 148,241 shares of BRR on the open market, worth about $359,000. This is not an isolated move but part of a share repurchase plan launched in December 2025. To date, the company has repurchased about 2% of its circulating shares.

Pompliano explicitly stated that as long as the market price remains significantly below NAV, the company will continue to “aggressively” buy back shares. In addition to the company’s actions, Pompliano himself has previously invested $1 million of his own funds to buy company stock, tying his equity incentives closely to the stock price—he will only receive equity incentives if the stock reaches $15. This “walk the talk” approach aims to signal the management’s strong confidence in the company’s value to the market.

Outlook Analysis: Can Buybacks Turn the Tide?

In theory, buyback programs can help boost the stock price. First, reducing the number of outstanding shares can directly increase earnings per share and NAV. Second, repurchasing shares when the market price is far below intrinsic value is a form of value investing, which can benefit residual shareholders. Pompliano’s commitment to continue buybacks is akin to the company actively “bottom-fishing” itself, helping to gradually narrow the gap between market price and NAV.

However, challenges remain significant. BRR’s performance is highly dependent on Bitcoin’s price. If BTC cannot stabilize and rebound, ProCap’s asset base will remain under pressure, and the NAV could be further breached. Additionally, market confidence recovery will take time. Despite management’s efforts, whether investors will buy in depends on subsequent trading volume and price trends. Investors on Gate should also closely monitor ProCap’s future buyback frequency and amounts, as well as the overall trend in the Bitcoin market.

Conclusion

For investors following crypto-related listed assets on the Gate platform, ProCap’s case offers valuable insights. It reveals that even with the “Bitcoin treasury” halo, listed companies still face multiple challenges—market sentiment, liquidity, and NAV discounts.

The current buyback plan is a critical self-rescue after an 85% stock price plunge. Whether it can successfully reflect the $1 value back into the stock price depends not only on Pompliano’s commitment but also on the overall recovery of the Bitcoin market. When trading BRR on Gate, investors should view it as a leveraged Bitcoin substitute and carefully assess the potential for discount correction and associated risks.