Activist investor Irenic Capital has built a stake in Snap Inc. and disclosed its position to the social media company's leadership, according to reports from multiple sources familiar with the matter.

Irenic sent a letter to Snap CEO Evan Spiegel outlining strategic changes the firm believes could significantly increase the company's market valuation. The investment firm argued that Snap's market capitalization should reach approximately $35 billion, compared to its current enterprise value of around $7.9 billion.

Shares of Snap climbed 13% following news of Irenic's involvement and proposed strategy changes. The stock movement reflects investor interest in potential operational improvements at the Snapchat parent company.

Irenic Capital is known for taking activist positions in technology companies, working with management teams to implement strategic changes aimed at unlocking shareholder value. The firm's approach typically involves detailed analysis of operational efficiency and growth opportunities.

Snap has faced challenges in recent years as it competes with larger social media platforms for user attention and advertising revenue. The company's stock has experienced significant volatility as investors weigh its growth prospects against profitability concerns in the competitive social media landscape.