I believe prediction markets are going to become a much larger aspect of financial markets in the coming years. Today these markets are full of young people gambling on stupid things like what words are mentioned at a press conference, what color tie someone wears to an event, or if certain cultural events occur or not.
These types of childish markets will either be regulated away or they will fall in relevance as more traditional finance-related markets become the dominant use case.
The most interesting part of prediction markets for investors is the ability to isolate individual data points in their capital allocation strategy. Rather than having to buy indirect exposure to interest rates, prediction markets allow you to exclusively bet on what the exact interest rate will be at the next Fed meeting. Rather than buying or selling various assets in anticipation of a recession, prediction markets allow you to directly bet on whether a recession happens or not.
And prediction markets also allow you to wager capital on individual earnings report data points (ex: Tesla car deliveries) instead of having to buy a company’s stock and take the full exposure to the entire earnings report.
An obvious use case for these types of markets would be farmers who are looking to leverage prediction markets as a replacement for their current hedging or insurance strategies. Kalshi, the largest prediction market in the world, recently announced their intention to double down on commodities for these use cases.
Given my belief in prediction markets for investors, and @Kalshi’s agreement in the same theme, I am excited to announce this morning that Kalshi has partnered with ProCap Financial (Nasdaq: $BRR) to launch a dedicated institutional-grade research offering that will exclusively cover prediction markets.
This new product is available to any paying members of ProCap Insights, our agentic research offering. We have been using our agentic AI research system to dig through the Kalshi data over the last few days and the findings are incredibly interesting.
We have found numerous times where Kalshi traders called the bluff on Wall Street analysts and were right. We have found significantly mispriced markets on Kalshi and traditional exchanges. And we have found economic data points that were confirmed on Kalshi days before they were reported in the legacy system.
I believe the combination of agentic AI with prediction market data will help investors be better informed, while positioning them to make more money. Our team is excited about this partnership and looking forward to sharing the various insights we find.
Kalshi CEO Tarek Mansour told Reuters the following about our partnership: “prediction markets turn uncertainty about real-world events into actionable signals. We’re partnering with ProCap Financial to bring wisdom-of-the-crowds intelligence directly to financial research, so both retail and institutional investors can benefit from this data and analysis.”
You can subscribe to read the research: https://t.co/ZPn8rTjHOw
You can subscribe to read our agentic research from @procapinsights here: https://t.co/hhrfSs9RZm
We wil continue to use our AI system at $BRR to help independent investors make money.
Our mission at $BRR is to help independent investors make money.
We are building a financial institution that has majority of the work done by AI agents, rather than humans.
The agents are smarter than humans, so let’s unleash them. https://t.co/otu33hnbDJ
There is a supersonic tsunami of AI coming to the finance industry.
$BRR wants to be the pioneer.
I joined CNBC to talk about the launch of our new agentic research offering that wants to help independent investors make money.
Subscribe here: https://t.co/hhrfSs9RZm https://t.co/fT6P89eE86
Today we are launching the first agentic research shop: ProCap Insights
AI agents are very good at finding hidden insights in financial markets, but the tech can now produce research reports faster and cheaper than humans too.
We fundamentally believe the machines are smarter than the humans.
You can subscribe here: https://t.co/ZPn8rTjHOw
Our goal is to build an agentic finance firm. Currently we have a popular consumer finance product, plus this research offering.
At $BRR, we will continue to eat the full stack of traditional finance firms with artificial intelligence.
@CrusadeInvest @cfosilvia Our goal is to keep the core product free for users. We will introduce various paid features, new products, and other revenue opportunities for the company, but without putting a hard paywall on using the Silvia product.
$BRR's mission is to help independent investors make money so we will continue to use that as our north star when making many of these decisions.
I am excited to announce that @shaincodes is stepping into the role of CTO of ProCap Financial.
He is one of the best engineers I have worked with.
Shain built the original Silvia product by himself as a solo engineer and helped scale it to $30+ billion in assets.
Our engineering team has been quietly building one of the fastest growing fintech products in the country, but now we will start talking publicly about many of the unique and innovative things we have been doing from an engineering standpoint.
Shain has been a very big part of these initiatives and I am excited about him taking on a larger role across $BRR, including new agentic products to help independent investors make money.
ProCap Financial has officially closed the acquisition of @cfosilvia.
I believe this makes $BRR the first publicly traded AI model & agent lab.
We will continue to scale Silvia, while building more agentic products to help independent investors make money. https://t.co/FaAOaRSbFI
It is official.
$BRR is going to be the first publicly traded agentic finance firm.
The deal will close in early April and then we will begin talking about our AI model and agent lab focused on finance.
The team is working hard and we are excited to start sharing more. https://t.co/Fk6aEtGT46
@Samuel947117225 Silvia shareholders are paid $0 in stock or cash at acquisition. The only way Silvia shareholders are compensated is if $BRR more than triples to $9 per share.
So in order for there to be any dilution, current BRR shareholders have to more than triple their investment.
We repurchased another ~ 196,000 shares of $BRR yesterday.
The feeding frenzy continues... https://t.co/9dV7GS1IAc
Every day feels like Christmas morning when the market is willing to sell you shares of your own company below NAV.
We continue to aggressively repurchase shares of $BRR
Gobble, gobble! 🦃 https://t.co/IhaR753kNc
Our plan to aggressively repurchase shares of $BRR at a significant discount to NAV is working.
The discount has been nearly cut in half.
“We have already retired more than 3% of the Company’s outstanding stock and continue to vacuum up shares as fast as we are allowed." https://t.co/DsA8BHHiCv
Our share repurchases are getting larger at $BRR as the NAV discount gets smaller.
I said we would be aggressive :)
“We have a very strong balance sheet that we can continue using to repurchase as much of the company as possible while it trades at an irrational discount.” https://t.co/gPK3Hcv7rx
I just learned that $BRR is the 19th largest holder of bitcoin in the public markets globally.
The business has been public for less than 90 days.
Pretty cool.
We have acquired another 450 bitcoin at $BRR.
We continue to aggressively repurchase shares trading below NAV.
“Our disciplined approach to our balance sheet has put us in a position to play offense now that Bitcoin has significantly fallen from the all-time high.” https://t.co/r66vFoURlP
"Our strategy is working...the job is not done."
We continue to aggressively repurchase $BRR shares and the discount to NAV is shrinking. https://t.co/BSPXvdX2R2
@CochranCrypto @cfosilvia It is literally why we built the product. We talked about this in the announcement of $BRR agreeing to acquire Silvia. https://t.co/X6kf0Yp6Ry
We accelerated our share buybacks yesterday at $BRR.
The NAV discount continues to close.
We will continue to aggressively repurchase shares as long as the market is irrational. https://t.co/OqkTnsW1ti
We are in attack mode at $BRR.
The NAV discount is beginning to close.
“Our balance sheet is allowing us to play offense. If the market wants to irrationally sell us shares below NAV, we will keep aggressively buying them.” https://t.co/hoyJrIMLbw
@aj_oommen @Crowded_Mkt_Rpt The Silvia shareholders, including my investment firm, do not get paid unless $BRR shares trade above $9/share. So the stock has to more than 3x before any shareholders of Silvia get paid.
If BRR shares never trade above $9/share, then ProCap Financial got Silvia for free.
So I not only was I right, but I appreciate you giving me the opportunity to explain how much I believe in the long-term value of the company.
@Crowded_Mkt_Rpt There is a legal limit to how much we are allowed to buy back every day given the past trading volume. As trading volume increases in the future, the limit will increase too.
You either know that already and are being intellectually dishonest … or you are not as smart as you pretend to be.
And I purchased $1 million of $BRR personally, get paid a $1 salary per year, and have to get the stock up more than 500% before I personally get paid shares as CEO.
I don’t think anyone questions my skin in the game.
We repurchased another 155,561 shares of $BRR yesterday.
As long as the stock trades at a significant discount to NAV, we will continue to aggressively buy back shares.
Capital allocation 101. https://t.co/yvqVwjEUpI
Every great investor knows you should buy assets for less than they are worth.
$BRR shares are trading at a substantial discount to NAV, so we are buying our stock back.
We will continue to AGGRESSIVELY buy the stock as long as it trades at a large discount. https://t.co/Mfk5NaglYK
To $BRR shareholders,
AI is our offense. Bitcoin is our defense.
This is an arms race. Not with weapons. With code.
There is an immense amount of work ahead. The team is focused on building a company that we are all proud to own. https://t.co/jKMvGL3AQH
@PAUL_THE_NERD_ Silvia has entered into an agreement to be acquired by ProCap Financial ( $BRR )
You can read about the announcement here, along with details on the shareholder approval. https://t.co/ecZ2Byhsk9.
Silvia now has more than $33 billion in assets on the platform.
Our goal is to grow 5% week-over-week.
Once the acquisition with $BRR is completed, I hope to be able to accelerate growth even more.
Try Silvia for free: https://t.co/587F3GzJzR https://t.co/LtnvUu7M6Z
ProCap Financial has entered into an agreement to acquire CFO Silvia, Inc to become the first publicly traded agentic finance firm.
Our mission is “to help independent investors make money.”
We currently have on our balance sheet:
- 5,007 bitcoin
- $70+ million cash
$BRR
ProCap Financial has engaged in a number of capital markets activities to strengthen the company.
- Purchased $135 million of convert debt for $119 million
- Bought back. ~ 2% of outstanding stock
- Acquired 6+ bitcoin with non-dilutive yield generation
$BRR https://t.co/qYbH2jLPeD
Since we publicly launched @cfosilvia about 9 months ago:
- Over $30 billion in assets on platform
- Average user has net worth over $2.5 million
- Average user connects 12+ accounts
- 94% of users interact with Silvia’s AI features
$BRR entered agreement to acquire Silvia.
@dotkrueger The $BRR stock has to increase ~ 400% in order for Silvia shareholders to get paid. If it doesn't go to $9/share, Silvia shareholders get $0 in the sale.
Given private valuations for a company like Silvia, this is about as shareholder friendly as a transaction can get, no? https://t.co/D7zFDbRz3U
@lukecannon727 No one is pivoting. Read our S-4. We have told people that we were building a modern finance firm since day one. I raised the money by telling people we were going to build an operating business that sweeps money on balance sheet into bitcoin.
Started Silvia before $BRR.
Now we have an agentic finance firm that leverages bitcoin on balance sheet. $30+ billion of assets on platform once shareholders approve, etc.
ProCap Financial $BRR as of early this morning:
- Bitcoin Holdings: 5,007 BTC
- Cash Position: $72 million
- Outstanding Convertible Notes: $100 million
- Outstanding Shares: 83,422,775
- mNAV per share: $3.92
- Discount to NAV: 0.6x
@ncsmokymtns Yes, we are combining them. The deal structure is very attractive for $BRR shareholders.
Silvia shareholders don't get paid unless $BRR stock goes to $9 per share (~ 400% increase)
ProCap Financial has been busy in the capital markets:
- Bought back ~2% of outstanding stock
- Retired $135M of convert. Paid $119M
- Acquired ~7 BTC from non-dilutive yield generation
The company is trading at significant discount to NAV, but these steps should help. $BRR https://t.co/kfiu5Wxzdw
ProCap Financial plans to be the first publicly traded agentic finance firm.
Our mission is "to help independent investors make money."
We believe the combination of bitcoin and AI provides a unique opportunity for $BRR shareholders. https://t.co/0UGqAkdVli
Silvia is one of the fastest growing finance products in the country.
In just 9 months, we have built one of the leading AI agent labs that is already serving $30+ billion in assets.
Upon approval, $BRR shareholders will now get exposure to bitcoin and AI in a single company. https://t.co/ch7Fuo4FCF
The future of finance is bitcoin & artificial intelligence.
Today ProCap Financial $BRR is announcing we have entered into an agreement to acquire CFO Silvia, which will make us the first publicly traded agentic finance firm.
AI is our offense, bitcoin is our defense. https://t.co/Ux0JVLm7AE
@RenoHemonc @elonmusk I have made no money from $BRR.
I have a $1 salary, I get no bonus or cash compensation, and I can only personally earn equity if the share price reaches $15 per share.
My investment firm currently has no shares unlocked.
Also, I personally invested $1 million in the stock.
Literally the only stock that I own I bought in the market like everyone else.
@Pledditor @elonmusk I know you can't read, so let me help you...
I bought $1 million of $BRR too
https://t.co/4TJmlWcWlU https://t.co/21ZD6Y7cVD
We currently hold about $469 million of bitcoin at $BRR.
Every company has to start somewhere.