AVAX One Technology has authorized a $40 million stock buyback program, seeking to counteract a nearly 70% decline in its share price since the company pivoted its treasury strategy to focus on the Avalanche cryptocurrency.
The company, trading as AVX and formerly known as AgriFORCE Growing Systems, aims to stabilize its market valuation.
The buyback initiative follows a sharp drop in its stock value, which occurred after it revealed plans in September to gradually accumulate Avalanche (AVAX) with a goal of raising $550 million for the digital asset acquisition.
Jolie Kahn, AVAX One’s Chief Executive Officer, stated the company anticipates entering the open market soon to execute the program.
She added that AVAX One would continue to assess further buybacks if market conditions permit.
Anthony Scaramucci, a veteran of the hedge fund sector, serves on AVAX One’s advisory board, lending visibility to the company’s new crypto-centric direction.
Despite this backing and the announcement, the company’s share price remained largely unchanged on the day the buyback was announced.
AVAX One’s move reflects a growing trend among crypto treasury firms facing significant market discounts.
Other companies like ETHZilla and FG Nexus have pursued similar buyback strategies, with some even liquidating portions of their digital asset holdings to finance these programs.
Analysts suggest these buybacks are a mechanism to address valuation gaps and restore investor confidence, especially when traditional markets are skeptical of companies with volatile crypto-asset exposure.
The strategy underscores the tension between long-term crypto ambitions and short-term investor expectations in traditional financial metrics.
AVAX One’s future trajectory will hinge on market conditions, the effective execution of its AVAX acquisition plan, and its ability to stabilize its position on the stock exchange.
The company has not specified additional buyback amounts or timelines, preferring flexibility to adapt to the cryptocurrency sector’s inherent volatility.