AVAX One shares plunge after filing to register nearly 74 million insider shares

Shares of AVAX One, a digital asset treasury firm advised by Anthony Scaramucci, fell more than 30% after the company filed to register nearly 74 million shares held by insiders as available for sale.

The filing, made late on Tuesday, disclosed that the firm—which holds AVAX tokens and related Avalanche ecosystem assets—registered roughly 74 million insider-held shares. The registration enables early investors to resell previously restricted stock and stoked fears of dilution among investors.

AVAX One did not specify when, or even whether, the registered shares would be sold, but registering them with the SEC paves the way for resale on the public market. The steep market reaction highlighted investor concerns that a block of previously restricted stock could soon hit the open market, a dynamic that can depress prices in illiquid or thinly traded stocks.

The company had recently announced a plan to buy back up to $40 million of its own shares if the net asset value of its holdings fell below the company’s market cap. Observers noted that buybacks have become common among crypto-native public firms, and AVAX One’s strategy mirrors moves by other digital asset treasuries such as BitMine and KindlyMD, whose stocks have faced similar pressures as prices lagged net asset values.

It remains unclear if or when the registered insider shares will actually be sold.