AVAX One Technology (AVX), an Avalanche-centered digital asset treasury company with hedge fund veteran Anthony Scaramucci heading the advisory board, is the latest to turn to share buybacks to arrest plunging stock prices.
The firm said Thursday its board authorized an up to $40 million stock repurchase program, which will be executed at the company’s discretion depending market conditions.
“We expect to hit the open market soon and will continue to assess additional repurchases as conditions warrant,” CEO Jolie Kahn said in a statement.
Shares are roughly 70% below their closing price on the day the company announced its crypto treasury pivot. They’re little-changed on Thursday.
The move comes as several crypto treasury companies are increasingly turning to share buybacks to close steep discounts between their share prices and the value of their underlying holdings. Some firms, 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 to a crypto treasury strategy with plans to raise $550 million to acquire AVAX over time.
Read more: Ether Treasury Firm FG Nexus Unloads Nearly 11K ETH to Fund Share Buyback