Crypto Companies Using Buybacks to Boost Stock and Trust – Crypto News

Crypto treasury companies are starting to see share price gains off the back of stock buyback programs, which analysts say could be a sign that the companies are now battling for credibility. 

Trump Jr.-linked media company Thumzup, which holds Bitcoin (BTC) and Dogecoin (DOGE), said on Wednesday it was increasing a share buyback from $1 million to $10 million, which sent its stock (TZUP) up 7% for the session and another 0.82% after hours to trade $4.91.

At the same time, Solana treasury company DeFi Development Corp (DFDV) expanded its share repurchase from $1 million to $100 million, which saw its stock registered gains of over 5%, before settling at a more than 2% gain and another 1% after hours to trade at $15.50.

The gains come after 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” era to compete harder for investor money.

Treasury race is becoming about credibility 

Speaking to Cointelegraph, Ryan McMillin, chief investment officer of Australian crypto investment manager Merkle Tree Capital, said the stock buybacks are a sign the crypto treasury race is starting to become 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 all crypto treasury companies with buyback promises have benefited, though. TON Strategy Company, previously known as Verb Technology Company, made a similar move on Sept. 12, but its stock (TONX) didn’t react positively and declined 7.5%.