AVAX One, the digital asset treasury firm advised by SkyBridge Capital founder Anthony Scaramucci, saw its shares fall more than 32% after listing nearly 74 million shares held by insiders as available for sale.
The company, which holds AVAX tokens and assets related to the Avalanche ecosystem, made the revelation on Tuesday evening. While the filing does not specify when, or even if, the shares will be sold, registering them with the SEC paves the way for resale on the public market.
The strong market reaction highlights investor concerns about dilution. When registering shares for resale, companies often indicate that a block of previously restricted shares could soon hit the open market. That can drive down prices, especially in illiquid or thinly traded stocks.
AVAX One had recently announced a plan to buy back up to $40 million of its own shares, a move aimed at boosting the stock should the net asset value of its holdings fall below the company’s market capitalization.
Buybacks have become an increasingly common tool among public crypto-native companies. AVAX One’s strategy mirrors that of other digital asset treasuries such as BitMine and KindlyMD, which have faced similar pressures as their share prices lag far behind the net asset values of their token holdings.
