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- TON Strategy repurchased 250,000 shares at $8.32 each amid a steep stock decline.
- The firm holds $713M in Toncoin and has begun staking to earn revenue.
- Investor skepticism toward crypto treasury companies is pressuring valuations.
TON Strategy Company — formerly Verb Technology — has repurchased 250,000 of its own shares at $8.32 each, totaling just over $2 million. The buyback is part of a previously announced $250 million share repurchase program. It comes weeks after the firm unveiled a $713 million reserve of Toncoin (TON), the native token of The Open Network. The token currently trades near $3.22 and has dropped over 40% year-to-date.
Despite the firm’s aim to signal “long-term confidence” in the TON ecosystem, the stock market’s reaction was muted. Shares fell another 7.5% following Friday’s announcement, extending their total decline to 21.6% since the company declared its shift to a Toncoin treasury model.
Market Enthusiasm for Crypto Treasuries Fades
TON Strategy’s pivot made it the first publicly traded company to establish a Toncoin treasury in August. However, investor interest in crypto-focused treasury companies appears to be cooling. Coinbase recently warned that such firms are entering a “player vs. player” phase, where attracting capital is becoming increasingly difficult. Similarly, the New York Digital Investment Group noted that valuation premiums for these companies are narrowing.
Also Read: BONK Price Surges as Launchpad and ETF Boost Retail & Institutional Interest
This broader skepticism has contributed to the company’s declining stock performance, raising doubts about the short-term effectiveness of buybacks to reverse sentiment.
Staking Adds New Revenue Stream
Alongside the buyback, TON Strategy also announced it has begun staking its Toncoin holdings to earn onchain income. CEO Veronika Kapustina said staking would “introduce a recurring revenue stream” to the company’s model. Current staking rewards on the TON network stand at around 4.8% annually, according to Staking Rewards.
By combining staking revenues with strategic buybacks, TON Strategy hopes to reassure investors and stabilize its market position — though headwinds in the broader crypto treasury sector may persist.
While TON Strategy’s buyback reflects confidence in the TON ecosystem, its steep share price decline shows waning enthusiasm for crypto treasury companies. The success of its staking strategy could be crucial in restoring investor trust.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
