Crypto treasury firms are seeing their stock prices climb on the back of aggressive buyback programs, a move analysts suggest reflects a growing battle for credibility.
Trump Jr.-linked media firm Thumzup, which holds Bitcoin and Dogecoin, announced Wednesday it was boosting its buyback plan from $1 million to $10 million. The news pushed its shares (TZUP) up 7% during the session and another 0.82% after hours, closing at $4.91.
Meanwhile, Solana-focused treasury company DeFi Development Corp (DFDV) raised its repurchase program from $1 million to $100 million. Its stock initially jumped over 5%, before settling with a 2% gain and another 1% after hours, ending the day at $15.50.
The recent gains follow a Sept. 10 report from Coinbase researchers David Duong and Colin Basco, which suggested that publicly traded companies buying crypto are entering a “player vs. player” phase, competing more aggressively for investor capital.
Treasury competition now hinges on credibility
Speaking to Cointelegraph, Ryan McMillin, CIO of Australian crypto investment firm Merkle Tree Capital, said the stock buybacks indicate the crypto treasury race is evolving into a “credibility race.”
“It’s no longer enough to simply say ‘we hold Bitcoin,’” he explained. “Investors now expect professional capital management — buybacks, dividends, and clear treasury strategies.”
“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 signal confidence, but results vary
Not all crypto treasury companies have seen positive effects from buyback announcements. TON Strategy Company (formerly Verb Technology), for example, announced a buyback on Sept. 12, but its stock (TONX) fell 7.5%.
According to Ryan McMillin, share repurchases are a “classic signal of confidence” when a company believes its stock is undervalued. This is particularly relevant for listed crypto-treasury firms, whose valuations often trade at a premium or discount to their Bitcoin holdings (mNAV).”
He added: “A buyback can narrow that gap by reducing float and demonstrating financial discipline — something investors reward. Stock prices can also move as traders anticipate strong demand. At the same time, buying more Bitcoin increases exposure to volatility.”
“A buyback, on the other hand, boosts shareholder value directly, while still leaving the crypto treasury story intact. It also appeals to a broader investor base — some want the Bitcoin narrative, others want capital discipline. A well-timed buyback balances both.”
Crypto treasury race pits the dollar against Bitcoin
Kadan Stadelmann, CTO of blockchain platform Komodo, noted that when companies use cash reserves to repurchase shares, fewer are available to the public, creating scarcity and upward pressure on stock prices.
“The competition among crypto treasury firms is about who can build the most compelling treasury structure,” he said. “What we’re really seeing, though, is hyperbitcoinization—a move toward de-dollarization, essentially Bitcoin versus the dollar.”
Crypto asset treasuries show no signs of slowing
Data from Bitbo shows that companies holding Bitcoin on their balance sheets now collectively control over 1.4 million coins, roughly 6.6% of the total supply.
Michael Saylor’s Strategy leads the pack
Michael Saylor’s firm, Strategy, remains the frontrunner with 638,985 Bitcoin and continues to make regular acquisitions. Some analysts warn that the market for crypto-buying companies is oversaturated, and not all players are likely to survive long-term.
However, Kadan Stadelmann doesn’t expect the trend of crypto asset treasuries to slow anytime soon. He predicts that more companies—including Fortune 500 firms—will allocate portions of their treasuries to Bitcoin and other crypto assets.
“A big question for investors is which companies are most likely to hold onto their Bitcoin through thick and thin, rather than sell amid bear markets or panics.”
