AVAX One Technology (AVX), an avalanche-focused digital asset treasury company whose advisory board is headed by hedge fund veteran Anthony Scaramucci, is the latest company to turn to share buybacks to stem falling stock prices.
The firm said Thursday that its board has authorized a stock repurchase program of up to $40 million, which will be executed at the company’s discretion depending on 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 were down nearly 70% from their closing price on the day the company announced its crypto treasury pivot. There was a slight change in him on Thursday.
The move comes as many crypto treasury companies are increasingly turning to share buybacks to close the huge discounts between their share prices and the value of their underlying holdings. Some companies like EThzilla and FG Nexus also sold some of their crypto assets to finance similar programs.
AVAX One, formerly known as Agriforce Growing Systems, moved toward a crypto treasury strategy in September 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