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AVAX One, associated with Anthony Scaramucci, plummets by 32% due to uncertainties concerning shareholder transactions.
The company, which possesses AVAX tokens along with associated Avalanche ecosystem assets, reported approximately 74 million shares owned by insiders.
Key points:
- Shares of AVAX One, a digital asset treasury firm guided by Anthony Scaramucci, plummeted over 30% following the company’s registration of nearly 74 million shares owned by insiders as available for sale.
- The registration allows early investors to sell previously restricted stock, raising concerns about potential dilution.
- AVAX One’s actions reflect wider challenges faced by crypto-focused public companies whose shares trade significantly below the worth of their token assets, although it remains uncertain if or when the registered shares will be sold.
AVAX One, the digital asset treasury firm advised by SkyBridge Capital’s founder Anthony Scaramucci, experienced a drop of over 32% in its shares after it registered nearly 74 million shares held by insiders as available for sale.
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The company, which retains AVAX tokens and related Avalanche ecosystem assets, made the announcement late Tuesday. While the filing did not clarify when, or if, the shares would be sold, registering them with the SEC facilitates resale on the public market.
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The sharp market response underscores investor worries regarding dilution. By registering shares for resale, companies often indicate that a portion of previously restricted stock may soon become available on the open market. This can lead to price declines, particularly in illiquid or thinly traded stocks.
AVAX One had recently disclosed a plan to repurchase up to $40 million of its own shares — a strategy intended to enhance share value should the net asset value of its holdings drop below the company’s market capitalization.
Buybacks have increasingly become a prevalent strategy among crypto-native public companies. AVAX One’s approach is similar to that of other digital asset treasuries such as BitMine and KindlyMD, which have encountered comparable pressures as their stock prices lag significantly behind the net asset values of their token holdings.
