AVAX One Technology (AVX), an Avalanche-focused digital asset treasury company with hedge fund veteran Anthony Scaramucci as head of the advisory board, is the latest to turn to stock buybacks to stop falling stock prices.
The company announced Thursday that its board of directors has authorized a stock repurchase program of up to $40 million, which will be executed at the company’s discretion based on market conditions.
“We plan to enter the open market soon and will continue to evaluate additional repurchases if conditions warrant,” CEO Jolie Kahn said in a statement.
Shares are about 70% below their closing price the day the company announced its crypto cash pivot. They changed little on Thursday.
The move comes as several crypto treasury companies are increasingly turning to stock buybacks to close out significant discounts between their stock prices and the value of their underlying holdings. Some companies, like ETHZilla and FG Nexus, have even sold some of their crypto assets to fund similar programs.
AVAX One, formerly known as AgriFORCE Growing Systems, pivoted to a crypto treasury strategy in September 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
