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Cryptocurrency companies are starting to see stock prices rising on the back of the stock buyback program, which analysts say may indicate that these companies are now fighting for credibility.
Trump Jr. Jr. Jr. Jr. Jr. Jr. Jr. Jr. Jr. media company Thumzup, which owns Bitcoin (BTC) and Dogecoin (Doge), said it increased its share buyback from $1 million to $10 million, with the stock (TZUP) rising 7%, while another 0.82% of stocks rose to $4.91 after get off work.
Meanwhile, Solana Finance Company Defi Development Corp (DFDV) expanded its share buyback from $1 million to $100 million, earning more than 5% on its stock registration, and then earning more than 2% on a more than 2% return and trading stock after $15.50.
In a report on September 10, Coinbase’s research director David Duong and researcher Colin Basco predicted that the achievement is to enter the era of “players and players” when crypto-buying public companies enter the era of “players and players” to win investors’ money.
Financial competition is becoming related to credibility
Ryan McMillin, chief investment officer at cryptocurrency investment manager at Australia, said in a speech by Cointelegraph that stock buybacks are a sign that Crypto Treasury Race has begun to become a “credit race.”
“This is no longer enough to say ‘we have bitcoin’. Investors want professional capital allocations – buybacks, dividends, clear treasury strategies,” he said.
“The integration of corporate financial tools and digital asset narratives is very powerful. It says these companies need to judge not only under Bitcoin exposure, but also within the scope of shareholder returns.”
Repurchase is also a sign of confidence
However, not all cryptocurrency companies with a buyback commitment benefit. Ton Strategy Company (formerly known as Verb Technology Company) took similar action on September 12, but its stock (TONX) did not respond positively, down 7.5%.
McMillin said that when companies think their stock is undervalued, the stock’s buyback represents a “classic signal” which is important for listed cryptocurrency companies because “their valuations are often discounted at high prices or discounts to their Bitcoin Holdings (MNAV) (MNAV).
“Repurchases can bridge the gap by reducing relief and showing discipline – investor rewards. Prices can also be increased as traders want to get good demand. Buying more bitcoins increases the impact on volatility,” he said.
“On the other hand, the buyback directly raises the shareholder value while still keeping the cryptocurrency story intact. It also attracts a wider investor base – some want a bitcoin narrative, some want capital discipline. Both have good buyback balances.”
Crypto Finance Competition is about the US dollar and Bitcoin
Meanwhile, Kadan Stadelmann, chief technology officer of blockchain-based Komodo platform, told Cointelegraph that when companies use cash reserves to buy back shares, fewer of them are available for scarcity and price increases for the general public.
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“Cryptocurrency companies are competing for which to create the most attractive cryptocurrency structures, but what we’re seeing is hyperstabilization, a form of paid money – bitcoin anct the Dollar.”
Crypto assets treasury won’t disappear soon
Bitbo is tracking the addition of Bitcoin to the companies’ balance sheets, which own more than 1.4 million coins, or about 6.6% of the total supply.
Michael Saylor’s corporate strategy is the leader in 638,985 bitcoins and continues to buy regularly. Some analysts say that the market for crypto companies is oversaturated and not everyone will survive for a long time.
Stadelmann said he does not think the “critical treasury phenomenon” will slow down soon because “increasingly, companies will allocate some of the treasury to Bitcoin and other crypto assets, including Fortune 500 companies.”
“A big question for investors is which companies are most likely to stick to their bitcoins through thick and thin companies rather than selling them in a bear market or panic.”
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