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.

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