AVAX One Technology (AVX), an Avalanche-focused digital asset treasury company with hedge fund veteran Anthony Scaramucci leading the advisory board, is the latest to turn to share buybacks to stop falling share prices.
The firm said Thursday that its board of directors authorized a share buyback program of up to $40 million, which will be executed at the company’s discretion depending on market conditions.
“We look forward to hitting the open market soon and will continue to evaluate additional buybacks as conditions warrant,” CEO Jolie Kahn said in a statement.
The stock is about 70% below its closing price on the day the company announced its crypto treasury turnaround. On Thursday they will hardly change.
The move comes as several cryptocurrency treasury companies increasingly turn to share buybacks to close deep discounts between their share prices and the value of their underlying holdings. Some companies, such as ETHZilla and FG Nexus, even sold some of their crypto assets to fund similar programs.
AVAX One, formerly known as AgriFORCE Growing Systems, pivoted in September toward a crypto treasury strategy with plans to raise $550 million to acquire AVAX over time.
Read more: Ether treasury firm FG Nexus offloads nearly 11,000 ETH to fund share buyback
