TON Strategy launches $250M buyback while shares drop 7.5%
Since announcing its pivot to become a TON treasury company, its share price has fallen over 21% as enthusiasm for crypto treasury companies wanes.
TON Strategy Company, previously known as Verb Technology Company, said on Friday it repurchased 250,000 shares of its common stock under its $250 million buyback agreement.
According to the announcement, TON Strategy Company repurchased the shares at $8.32 each, below the treasury asset value of $12.18. The buyback comes just weeks after it revealed a $713 million reserve of Toncoin (TON) tokens on Aug. 21. TON Strategy says its buyback indicates “long-term confidence” in the TON ecosystem.
The TON token is the native cryptocurrency of The Open Network, a project that started in 2018 and was initially conceived to bring blockchain to messaging service Telegram. The crypto token is ranked No. 22 overall in market capitalization, with its price is declining 40.7% year-to-date, according to Cointelegraph indexes.