Crypto Treasury Companies is beginning to see a rise in stock prices in the background of its stock buyback program. Analysts say it is a sign that companies are currently fighting for reliability.
Thumzup, the Trump Jr.-Linked Media Company, which holds Bitcoin (BTC) and Dogecoin (Doge), said it increased its share buybacks from $1 million to $10 million on Wednesday, up 7% in sessions and an operating hours of 0.82% at $4.91.
At the same time, Solana Treasury Company Defi Development Corp. (DFDV) expanded its stock repurchase from $1 million to $100 million.
This comes after Coinbase’s research director David Duong and researcher Colin Basco predicted in a September 10 report that public companies buying crypto would be in “players vs. players” to compete more for investors’ money.
The Ministry of Finance race is becoming more and more reliable
Speaking to Cointelegraph, Ryan McMillin, chief investment officer at Australia’s Crypto Investment Manager Merkle Tree Capital, said the stock buyback is a sign that Crypto Treasury Race is beginning to become a “reliability race.”
“It’s not enough to just say “I’m holding Bitcoin.” Investors are looking for professional capital allocations, including buybacks, dividends and clear financial strategies,” he said.
“The fusion of corporate finance tools with the digital asset narrative is powerful, indicating that these companies want to be judged not just by Bitcoin exposure, but by shareholder returns.”
Buying back is also a sign of confidence
However, not all cryptocurrency companies with a buyback promise are benefiting. The Ton Strategy Company, formerly known as the verb Technology Company, made a similar move on September 12th, but its inventory (Tonx) did not respond positively, dropping by 7.5%.
McMillin said the stock buyback represents a “classic signal of confidence.” This is important for listed cryptocurrency companies, as “their valuations often sway with Bitcoin Holdings (MNAV) premiums or discounts,” he said.
“Buybacks can close that gap by reducing floats and showing discipline – investors will reward them, and prices can move as traders see demand for the final amount.
“Buyback, on the other hand, directly raises shareholder value, leaving the Cryptocurrency narrative intact, and appeals to a broader investor base. Some want a Bitcoin story, while others want capital discipline.
Crypto Treasury Race is about dollars vs bitcoin
Meanwhile, Kadan Stadelmann, chief technology officer for blockchain-based Komodo Platform, told CointeLegraph that if companies use cash reserves to buy back shares, it will be less accessible to the public, leading to scarcity and upward pressure on prices.
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“Cryptocurrencies are competing to see which cryptocurrency structures can be created, but what we’re looking at is hyperbitcoinization, which is a form of derailment, Bitcoin vs. dollar,” he said.
Crypto Asset’s Ministry of Finance will not disappear anytime soon
Bitbo added Bitcoin to its balance sheet and holds over 1.4 million coins, accounting for around 6.6% of its total supply.
Strategy, the company of Michael Saylor, is a front runner with 638,985 bitcoins and continues to make regular purchases. Some analysts say the crypto buying company market is oversaturated and that not all will survive in the long term.
Stadelmann said the “Crypto Asset Creasuries phenomenon” would not be delayed anytime soon as “an increasing number of companies allocate part of the Treasury to other crypto assets, including Bitcoin and Fortune 500 companies.”
“The big question for investors is that companies that are most likely to hold thick, thin bitcoin, rather than selling in bear markets or panic.”
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