Crypto Treasury companies are starting to see sharing prices from the back of stock purchase programs, which analysts say can be a sign that companies are now fighting for credibility.
Trump Jr.-link media company Thumzup, who holds in Bitcoin (Btc) and dogecoin (Doge) Says On Wednesday increases a share buyback from $ 1 million to $ 10 million, which sent Its stock (TZUP) is 7% for session and another 0.82% after time to trade $ 4.91.
At the same time, Solana Treasury Company Defi Development Corp (DFDV) expanded Its sharing shares from $ 1 million to $ 100 million, which has seen its stock Register Those who earn more than 5%, before adjusting to more than 2% gain and another 1% after time to trade at $ 15.50.
It came after the head of Coinbase research, David Duong, and researcher Colin Basco predicted In a Sept. 10 Crypto-buying public companies enters a “Player VS Player” to compete more difficult for investor money.
Treasury breed becomes about credibility
In a conversation with Cointelegraph, Ryan McMillin, chief investment official of Australian Crypto investment manager Merkle Tree Capital, said stock buybacks were a sign that the breed of Crypto Treasury is beginning to become a “breed of credibility.”
“It’s not enough to say ‘we’re holding Bitcoin.’ Investors want professional capital allocation – purchases, dividends, clear treasury techniques, “he said.
“Integration of corporate financial tools with a digital-asset narrative is strong. It indicates these companies to judge not only exposure to Bitcoin, but to the return of the shareholder.”
Purchases are also a sign of confidence
Not all crypto treasury companies with purchase promises have benefited, though. The ton approach company, formerly known as the Verb Technology Company, has been made A similar move on September 12But its stock (tonx) has not been positive and declined 7.5%.
McMillin said share buybacks represent a “classic confidence signal,” when a company thinks its stock is undervalued, which is essential for the listed Crypto-treasury companies Because “their values are often engaged in a premium or discount on their Bitcoin (MNAV) holdings.”
“A purchase can tighten the gap by reducing the float and displaying discipline-the reward of investors. The price can also be moved while entrepreneurs are looking in the face of a decent volume of demand. Buying more Bitcoin increases in volatility,” he said.
“A purchase, on the other hand, has raised the shareholder’s value directly, while still leaving the Crypto Treasury story. It also appealed to a broader investor base-some want the narrative of Bitcoin, others want the discipline of capital.
The Crypto Treasury Race is about dollar compared to Bitcoin
Meanwhile, Kadan Stadelmann, chief Blockchain -based technology -based technology official, told cointelegraph that when a company uses cash reserves to buy back sharing, less available for the general public, leading to deficiency and upward price pressure.
Related: Ramaswamy-backed Strive bought semler scientific at Bitcoin Treasury Merger
“Crypto treasury companies are competing to see which one can create the most attractive crypto wealth structure, but what we see is hyperbitcoinization, which is a form of a delicious-volume compared to the dollar,” he said.
Crypto Asset Treasury will not be lost anytime soon
The star is Tracking Companies that added Bitcoin to their balance sheets, holding more than 1.4 million coins, representing about 6.6% of the total supply.
Michael Saylor’s Company, Strategyis the frontrunner with 638,985 bitcoin and continue to make regular purchases. Some analysts say of Crypto purchase market is oversaturatedAnd not everyone can survive the long -term.
Stadelmann said he does not think that “the phenomenon of crypto assets” is slow at any time soon, as a “increasing number of companies will provide part of their wealth in Bitcoin and other crypto assets, including Fortune 500 companies.”
“One big question for investors is which companies are likely to hold their Bitcoin through thick and thin, rather than selling in the middle of markets or panic.”
Magazine: How do the world’s major religions look at Bitcoin and Cryptocurrency?
