AVAX One, the digital asset treasury company 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 owns AVAX tokens and associated assets of the Avalanche ecosystem, made the disclosure on Tuesday evening. Although the filing does not specify when, or even if, the shares would be sold, their registration with the SEC paves the way for their resale in the public market.
The strong market reaction highlights investors’ concerns about dilution. By registering shares for resale, companies often signal that a block of previously restricted shares may soon hit the open market. This can depress prices, especially on illiquid or thinly traded stocks.
AVAX One recently announced a plan to repurchase up to $40 million of its own shares – a move aimed at strengthening the stock if the net asset value of its holdings fell below the company’s market capitalization.
Buybacks have become an increasingly common tool among crypto-native public companies. AVAX One’s strategy mirrors that of other digital asset treasuries like BitMine and KindlyMD, which have faced similar pressures as their stock prices lag far behind the net asset value of their token holdings.
