Crypto Hoarders Turn to Share Buybacks in Push to Boost Falling Stock Prices
By [TVN] — 24 September 2025
A wave of companies that once bet heavily on accumulating cryptocurrencies are now resorting to share buybacks in an effort to prop up sagging stock prices and rescue investor confidence. The trend reflects growing doubts about the long-term viability of the so-called “crypto treasury” model. Yahoo Finance+4Financial Times+4DL News+4
The Rise — and the Slide
Over the past year, dozens of non-crypto firms shifted strategy: raising capital, converting cash or debt into tokens like Bitcoin, Ethereum, or TON, and holding those tokens on their balance sheets. This “Saylor trade” (after MicroStrategy’s Michael Saylor) was popular among small-caps and biotech / tech companies seeking outsized upside. PYMNTS.com+3Reuters+3DL News+3
But as crypto markets cooled, many of these firms saw their stock prices fall harder than the underlying tokens they held. In many cases, the market capitalization of the company dropped below the net value of their crypto assets. That gap has triggered panic among investors. Yahoo Finance+4PYMNTS.com+4Cointelegraph+4
Buybacks as a Last Resort
In response, at least seven companies have launched significant share buyback programs recently. The idea: with stocks trading at a discount with respect to their crypto holdings, buying back shares both bolsters earnings per share and signals confidence to the market. But many see it as a desperate maneuver. Yahoo Finance+3DL News+3PYMNTS.com+3
Some notable cases:
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Sharplink Gaming (SBET) – An ETH-treasury company, launched a $1.5 billion share buyback after its shares began trading below its net asset value. Cointelegraph
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ETHZilla – Formerly 180 Life Sciences, the firm approved a buyback of up to $250 million. The Block+2Investopedia+2
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TON Strategy Company – Repurchased shares under its $250 million buyback plan, even though its share price dropped over 20% since pivoting toward a TON token reserve strategy. Cointelegraph
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SharpLink Gaming (same as Sharplink) also referenced undervaluation in starting its buyback. CoinDesk+1
What Analysts Think
Experts are broadly cautious, if not outright skeptical:
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Many believe the buybacks are signs the crypto treasury craze is peaking — the “Strategy copycats” are now forced into defensive steps.
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When a company’s stock falls below the value of its token holdings (net asset value, NAV), its ability to raise further capital via equity weakens. That hurts the original business model of accumulating more crypto.
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For some, this is a “death rattle” rather than a recovery plan — raising concerns about whether these firms can survive continued volatility. DL News+1
Implications & Risks
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Shareholder dilution & debt risk: Some buybacks are being funded by debt, which increases financial risk especially if token prices continue to fall. Financial Times+1
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Regulatory scrutiny: Exchanges and regulators may take interest in how companies are using crypto holdings and buybacks, especially if share repurchases look like efforts to mask poor fundamental performance. Seeking Alpha+1
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Investor sentiment: Confidence is fragile — if buybacks don’t stem the slide, or if token markets tumble further, more companies may find themselves leveraged and undervalued.
What to Watch
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Whether more companies adopt buybacks — and whether those buybacks are sustainable.
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How token prices (Bitcoin, Ethereum, TON, etc.) move — since they still deeply influence the market valuation of these firms.
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Changes in regulatory or accounting rules around how crypto holdings are valued on corporate books.
Bottom line: The “crypto treasury” playbook is being stress-tested. For some firms, share buybacks might be a temporary bandage. For others, this might mark the beginning of a reckoning — where ambition, token volatility, and financial reality collide
