A "credibility competition" has erupted on Wall Street! Encryption reserve companies have initiated a buyback wave worth billions of dollars, pumping retail funds.

Crypto Assets financial companies are initiating an unprecedented stock buyback frenzy, with multiple listed companies announcing large-scale buyback plans, attracting market attention. Analysts point out that this is not only a commitment to shareholder value but also marks the beginning of a "reputation competition" among crypto assets companies, as each company is actively vying for investor trust and funding.

####Crypto Assets companies' buyback scale surges, stock prices rise accordingly

(Source: Google)

Recently, several publicly traded companies holding Crypto Assets have significantly increased the scale of their stock repurchase plans, leading to a noticeable rise in stock prices. The media company Thumzup, associated with Little Trump, holds Bitcoin and Dogecoin. The company announced on Wednesday that it would dramatically increase its stock repurchase amount from 1 million dollars to 10 million dollars. After the news was released, its stock (TZUP) rose 7% during the day and continued to rise 0.82% after hours, with a trading price of 4.91 dollars.

What is even more striking is that Solana's funding company DeFi Development Corp (DFDV) has expanded its buyback scale from 1 million USD to an astonishing 100 million USD. This news drove its stock price up by more than 5%, ultimately closing up over 2%, and rising another 1% in after-hours trading, with a trading price reaching 15.50 USD.

Crypto Assets analyst Wang Ming stated: "These large-scale buyback plans reflect the confidence of the company's management in the value of their own stocks, and are also a strategic move to attract investors. In the current market environment, merely holding Bitcoin is no longer sufficient to win the favor of investors; the company needs to demonstrate more comprehensive financial management capabilities."

####The Shift from 'Financial Competition' to 'Credibility Competition'

Ryan McMillin, the Chief Investment Officer of the Australian Crypto Assets investment management firm Merkle Tree Capital, pointed out in an interview that stock buybacks indicate that the competition for Crypto Assets funding is evolving into a "reputation competition."

"Today's investors are no longer satisfied with simple declarations like 'we hold Bitcoin.' They expect to see professional capital allocation strategies, including buybacks, dividends, and clear financial planning," McMillin explained. "The fusion of corporate finance tools with the narrative of digital assets has produced a powerful effect, indicating that these companies want to be judged not just by the scale of their Bitcoin investments, but also by the tangible returns to shareholders."

This viewpoint is supported by market research. CEX research director David Duong and researcher Colin Basco predicted in a report released on September 10 that the purchase of listed companies with Crypto Assets is entering the "player-to-player" era, and competition will become more intense.

####Repurchase Strategy: The Dual Role of Confidence Signals and Value Creation

Stock repurchase, as a financial strategy, holds special significance for Crypto Assets companies. McMillin points out that when a company believes its stock is undervalued, repurchase represents a "typical confidence signal," which is particularly important for publicly listed Crypto Assets companies.

"The valuations of these companies often fluctuate with a premium or discount relative to their Bitcoin holdings (mNAV). Buybacks can narrow this gap by reducing circulation and demonstrating financial discipline, which is a behavior that investors reward," he explained. "As traders look to capture significant demand, prices may also experience short-term volatility. In contrast, simply purchasing more Bitcoin would increase exposure to volatility."

Financial analyst Li Hua further explained: "The repurchase strategy can directly enhance shareholder value while maintaining the integrity of Crypto Assets. It can also attract a broader group of investors — some investors value Bitcoin's long-term value proposition, while others are more focused on short-term capital returns. A timely repurchase plan can effectively balance these two demands."

####The Battle Between US Dollar and Bitcoin

Kadan Stadelmann, the CTO of the Komodo platform, presented a deeper perspective, arguing that the current financial competition in Crypto Assets is essentially a contest between the US dollar and Bitcoin.

"When a company uses its cash reserves to buy back stock, the shares available for public purchase decrease, leading to scarcity and upward pressure on prices," Stadelmann explained. "Crypto finance companies are competing to see who can create the most attractive crypto financial structures, but what we are actually seeing is a phenomenon of 'super Bitcoinization', which is a form of de-dollarization – essentially the opposition of Bitcoin to the dollar."

This perspective reveals the core challenge faced by Crypto Assets companies: how to strike a balance between traditional financial management and emerging digital asset strategies.

####The phenomenon of encryption asset pools continues to expand

(Source: Bitbo)

According to tracking data from Bitbo, companies that have added Bitcoin to their balance sheets currently hold over 1.4 million coins, accounting for approximately 6.6% of the total supply. Among them, Michael Saylor's company Strategy leads by a wide margin with a holding of 638,985 coins and continues to make regular purchases.

Although some analysts believe that the market for companies purchasing Crypto Assets has become saturated and not all companies can survive in the long term, Stadelmann holds a different view. He stated, "The 'Crypto Assets warehouse phenomenon' will not slow down anytime soon, as more and more companies will allocate a portion of their funds to Bitcoin and other Crypto Assets, including Fortune 500 companies."

"For investors, a key question is which companies are most likely to steadfastly hold Bitcoin in any market environment, rather than selling off during a bear market or panic," he added. This perspective highlights the long-term commitment factors that investors need to consider when evaluating Crypto Assets companies.

####How should investors respond to this trend?

In the face of the "reputation competition" among Crypto Assets companies, how should investors formulate strategies? Financial advisor Zhang Wei suggests: "Investors should follow the overall financial health of the company, rather than just focusing on its Bitcoin holdings. The scale of the buyback plan, its execution status, and the company's long-term development strategy are all important factors to consider."

In addition, investors should closely follow changes in the regulatory environment. As the global regulatory framework for Crypto Assets continues to improve, companies holding large amounts of digital assets may face new compliance requirements and challenges.

"Ultimately, the successful Crypto Assets financial companies will be those that can strike a balance between holding digital assets and traditional financial management, while maintaining transparency and compliance," Zhang Wei concluded.

As Crypto Assets continue to integrate into the mainstream financial system, this "reputation race" may intensify further. For investors, identifying companies that can seize opportunities for digital asset growth while also safeguarding shareholder interests will be key to investment success.