TON Strategy, formerly Verb Technology Company, announced a $250 million share buyback, raising concerns in the market.
Share Buyback Announcement
TON Strategy Company announced the repurchase of 250,000 common shares at $8.32 per share. This price is below the asset valuation of the company, estimated at $12.18 per share. Despite this positive move, the stock price fell 7.5% on the announcement day, adding uncertainty to the market. Since the company pivoted to become a TON treasury firm, the stock price has decreased by 21.6%.
Financial Performance and Current Activities
Earlier, on August 21, TON Strategy revealed a sizable $713 million reserve of Toncoin tokens. This buyback initiative is aimed at demonstrating the company's long-term confidence in the TON blockchain ecosystem. Additionally, the company has started staking operations to generate consistent on-chain income from its treasury holdings. Staking involves locking tokens to support blockchain activities and earn rewards. TON Strategy CEO Veronika Kapustina emphasized that staking and buybacks create additional value for shareholders.
Competition in the Crypto Treasury Sector
According to sources, the TON network has approximately 340 active validators, with an annual staking reward rate of 4.8%. TON Strategy is the first publicly traded firm to operate a Toncoin treasury, ushering in a new trend in digital asset treasury. However, the crypto treasury sector faces increasing competition. Coinbase noted a transition to a more competitive environment where investor capital is becoming scarce.
As TON Strategy Company actively engages in share buybacks and implementing staking, there is a growing institutional interest in crypto treasuries, although with tightening competition ahead.
