Quick Breakdown
- Thumzup and DeFi Development Corp shares surged after announcing major buyback expansions, signaling investor confidence.
- Analysts say buybacks balance Bitcoin exposure with capital discipline, appealing to a wider investor base.
- Crypto treasury firms now hold 1.4M BTC, led by Strategy, as more companies explore Bitcoin allocations.
Buybacks spark gains in crypto treasury stocks
Crypto treasury companies are beginning to post share price gains off the back of aggressive stock buyback programs, a trend analysts say reflects a growing competition for investor trust.
Trump Jr.-linked media company Thumzup (TZUP), which holds Bitcoin (BTC) and Dogecoin (DOGE), announced on Wednesday that it was expanding its buyback program tenfold, from $1 million to $10 million. The move sent its stock up 7% during the session and another 0.82% after hours, pushing it to $4.91.
Similarly, DeFi Development Corp (DFDV), a Solana-focused treasury company boosted its buyback plan from $1 million to $100 million. The announcement fueled a 5% intraday rise, before settling at a 2% gain and another 1% in after-hours trading, closing at $15.50 according to Google Finance data.
Not all companies reap rewards
While some firms enjoyed immediate gains, others failed to win investor confidence. TON Strategy Company (TONX), formerly Verb Technology Company, unveiled its own buyback program on September 12, but the stock dropped 7.5% following the news.
This divergence suggests investors are becoming more selective, rewarding companies that demonstrate both discipline and a clear strategic outlook.
Analysts: buybacks signal confidence beyond Bitcoin holdings
Coinbase’s David Duong and Colin Basco recently described this new phase as a “player vs player” era, where public companies holding Bitcoin compete aggressively for market credibility.
Bigger picture: Bitcoin treasuries on the rise
According to Bitbo, public companies holding Bitcoin collectively control more than 1.4 million BTC, representing 6.6% of the total supply. Strategy, led by Michael Saylor, remains the frontrunner with 638,985 BTC under its belt.
Meanwhile, the rapid rise of crypto treasury companies, driven largely by the success of MicroStrategy’s Bitcoin acquisitions, saw over 200 firms globally integrate cryptocurrencies like Bitcoin and Ethereum into their corporate balance sheets. However, recent trends reveal a worrisome shift: many of these firms have started borrowing cash explicitly to fund share buybacks as their stock prices decline.
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