TON Strategy Company, formerly Verb Technology Company, announced a $250 million share buyback, repurchasing 250,000 common stock shares at $8.32 each. This price is below the treasury asset value per share estimated at $12.18.
Despite this buyback, TON’s share price dropped 7.5% on the announcement day. The decline follows a 21.6% decrease in share price since TON Strategy pivoted to become a TON treasury company, signaling tempered enthusiasm for crypto treasury firms.
Earlier, TON Strategy revealed a sizable $713 million reserve of Toncoin (TON) tokens on August 21. This buyback move is intended to reflect the firm’s long-term confidence in the TON blockchain ecosystem.
Toncoin is the native cryptocurrency of The Open Network, launched in 2018 initially to integrate blockchain with Telegram’s messaging service. Currently ranked 22nd by market capitalization, TON has seen a 40.7% decline in its price year-to-date, according to Coinstelegram indexes.
In addition to the buyback, TON Strategy started its staking operations aimed at generating consistent on-chain income from its treasury holdings. Staking involves locking tokens to support blockchain activities and earning rewards, making it a revenue stream alongside share buybacks.
TON Strategy CEO Veronika Kapustina emphasized that staking and buybacks enhance shareholder value by creating recurring revenue and improving returns.
The TON network has approximately 340 active validators, with an annual staking reward rate of 4.8%, per Staking Rewards data.
TON Strategy Company is the first publicly traded firm to operate a Toncoin treasury, ushering in a new trend of digital asset treasury (DAT) companies. Bloomberg reported that the TON Foundation and Kingsway Capital Partners are aiming to raise at least $400 million to establish a TON treasury company, highlighting growing institutional interest.
However, the crypto treasury sector faces increasing competition. Coinbase noted a transition to a “player vs player” stage, where investor capital will become scarcer. The New York Digital Investment Group also observes tightening premiums for such ventures, possibly foreseeing continued consolidation.
- TON Strategy repurchased 250,000 shares under its $250M buyback plan.
- Shares declined 7.5% on the announcement day, with a 21.6% drop since pivot.
- TON holds a $713 million reserve of Toncoin tokens.
- Staking operations started to generate on-chain income from treasury.
- TON token ranked 22nd by market capitalization, down 40.7% YTD.
- Crypto treasury companies face narrowing investor premiums and tougher funding competition.
Explore deeper insights and details about TON Strategy’s corporate moves and the evolving crypto treasury landscape at Coinstelegram.
