AVAX One shares, the digital asset treasury company advised by Anthony Scaramucci, dropped more than 30% after the company filed a registration statement to resell nearly 74 million shares held by insiders.
This filing allows early investors to resell shares that were previously restricted, raising concerns about potential dilution. Although it is not yet clear when or if these shares will actually be sold, the registration with the regulatory agency paves the way for them to appear on the open market.
AVAX One holds AVAX tokens and assets related to the Avalanche ecosystem. The negative market reaction indicates investor concerns that the share supply could increase significantly, especially amid limited trading liquidity.
Previously, the company announced a plan to repurchase up to $40 million of treasury shares to support the stock price in case the net asset value is lower than market capitalization. This share buyback strategy is also being adopted by many publicly listed companies operating in the digital asset sector, as their stock prices trade significantly below the value of their token holdings.
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