TON Strategy has announced that it has repurchased more than 250,000 shares of its common stock at an average price of $8.32 per share. According to the executive chairman of TON Strategy, Manuel Stotz, the buybacks below the company’s TAV per share reinforce its strategy of steadily compounding its value per share.
As of September 11, the crypto firm’s TAV per share was $12.181. The initiative is coming after it announced $250 million share buyback program. The digital asset treasury company is also committed to staking operations to generate on-chain income by using its treasury holdings as planned.
TON Strategy kicks off token staking
In its statement, TON Strategy said its share repurchase and the start of staking show its current financial strength. According to the firm, the initiative demonstrates its commitment to shareholder value and long-term confidence in The Open Network (TON) ecosystem. The company also said its repurchase program complements its recent launch of TON on Gemini, Robinhood, and Zengo.
TON Strategy believes the initiative represents steps toward broader market access for the token as the native asset. Stotz said the buybacks and staking initiatives demonstrate the company’s conviction in both the durability of its balance sheet and the long-term opportunity it envisions. He added that staking allows the firm to turn its role as a long-term holder of TON into an active contributor to the network’s security by generating yield that compounds alongside its treasury.
“We are executing on a strategic, disciplined capital allocation playbook. Staking introduces a recurring revenue stream into our model, while buyback allows us to enhance shareholder returns. At the same time, we are maintaining resources to continue expanding our TON treasury,” Veronika Kapustina, CEO of TON Strategy Company, said.
Shares drop after buyback announcement
The company announced the launch of its share repurchase program on September 8, allowing the firm to buy back up to $250 million of its common stock. The firm also appointed Cantor Fitzgerald & Co. as its non-exclusive agent to repurchase its shares. According to the report, the stock buy-back program provides flexibility around the timing and method of future repurchases in the open market or through other means in accordance with applicable securities laws.
TON Strategy Company also revealed that its mission is to support the growth and security of tokenized networks by serving as a long-term holder of TON. TON Strategy shares dropped by nearly 7.5% after the buyback announcement on Friday, and are currently trading at $7.24 at the time of publication. The company’s stock price dipped more than 60% in the past month and 21% since adopting the TON reserve treasury.
TON Foundation and Kingsway Capital Partners also raised approximately $400 million in July to launch a TON treasury company. Coinbase head of research David Duong and researcher Colin Basco said in a report on Wednesday that crypto-buying public companies are entering a player vs player stage where strategically positioned players will thrive. They argued that the initiative would see companies compete harder for investor money and could drive up crypto market prices from the unprecedented capital flowing into them.
