Crypto Buybacks: The Credibility Race Is On 😂

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Crypto treasury companies are suddenly seeing share-price gains courtesy of buybacks, analysts say it’s a “credibility race”-aka the strategic sprint to look less like a meme and more like a mature finance project, preferably one with a budget and not just vibes. 😅💸

Thumzup, the Trump Jr.-linked media player that totes Bitcoin and Dogecoin, announced a jump in its buyback from $1 million to $10 million, sending TZUP up 7% for the day and another 0.82% after hours to trade at $4.91. Yes, nothing says “fully independent governance” like letting a stock rally on a spreadsheet trick.

Simultaneously, Solana treasury player DeFi Development Corp (DFDV) expanded its buyback from $1 million to $100 million, pushing the stock up over 5% intraday, then settling at a gain of a bit more than 2% with another 1% after hours to $15.50.

Coinbase’s head of research, David Duong, and researcher Colin Basco predicted in a Sept. 10 report that crypto-buying public companies are entering a “player vs player” arena to compete harder for investor money. Fight, fight, fight. 🥊

Treasury race is becoming about credibility

Speaking to CryptoMoon, Ryan McMillin, CIO of Australian crypto investment manager Merkle Tree Capital, said these stock buybacks are a sign the crypto treasury race is turning into a “credibility race.”

“It’s no longer enough to say ‘we hold Bitcoin.’ Investors want professional capital allocation – buybacks, dividends, clear treasury strategies,” he said.

“The fusion of corporate finance tools with the digital-asset narrative is powerful. It signals these companies want to be judged not just on Bitcoin exposure, but on shareholder returns.”

Buybacks are also a sign of confidence

Not every company benefits, though. TON Strategy Company, formerly Verb Technology Company, launched a buyback on Sept. 12, but its stock (TONX) declined about 7.5%. Oof, nothing says “we nailed the market” like a chart that screams “psych!”

McMillin called share buybacks a “classic signal of confidence”-when a company thinks its stock is undervalued-and important for listed crypto-treasury firms because their valuations often swing around their Bitcoin holdings (nav).

“A buyback can tighten that gap by reducing float and showing discipline – which investors reward. The price can also move as traders front-run decent volume of demand. Buying more Bitcoin increases exposure to volatility,” he said.

“A buyback, on the other hand, boosts shareholder value directly, while still keeping the crypto treasury story intact. It also appeals to a broader investor base – some want the Bitcoin narrative, others want capital discipline. A well-timed buyback balances both.”

Crypto treasury race is about dollar vs Bitcoin

Meanwhile, Kadan Stadelmann, CTO of the blockchain-based Komodo Platform, told CryptoMoon that when a company uses cash reserves to buy back shares, fewer coins are available to the public, which creates scarcity and upward pressure on the price.

“The crypto treasury companies are trying to create the most enticing crypto treasury structure, but what we’re seeing is hyperbitcoinization-Bitcoin versus the dollar,” he said.

Crypto asset treasuries not going away anytime soon

Bitbo is tracking firms that have added Bitcoin to their balance sheets, holding over 1.4 million coins, about 6.6% of the total supply.

Michael Saylor’s company, Strategy, is the frontrunner with 638,985 Bitcoin and continues to buy regularly. Some analysts say the crypto buying-company market is oversaturated and not all will survive long-term.

Stadelmann says he doesn’t think “the phenomenon of crypto asset treasuries” will slow anytime soon, because an increasing number of companies will allocate part of their treasuries into Bitcoin and other crypto assets, including Fortune 500s.

“A big question for investors is which companies are most likely to hold onto their Bitcoin through thick and thin, rather than sell during bear markets or panics.”

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2025-09-25 07:22