TONX Plunges 7.48% on Ineffective Buyback, Crypto Volatility Weighs as Competitors Raise $400M

TON Strategy (TONX) fell 0.73% on Friday, marking its third consecutive day of declines with a cumulative drop of 7.48% in three days. The stock hit an intraday low, with a 4.38% single-day slide, underscoring growing investor skepticism amid strategic shifts and crypto market volatility.

The company’s recent share buyback program, announced on September 19, saw the repurchase of 250,000 shares at $8.32 each—well below its reported treasury asset value of $12.18 per share. This move, part of a $250 million buyback plan, failed to arrest the downward trend, as the stock fell 7.5% on the day of the announcement. The disparity between repurchase prices and stated valuations highlights concerns over the company’s ability to execute capital allocation strategies effectively.

Simultaneously, TON Strategy initiated staking operations for its 713 million TON token reserves, aiming to generate recurring revenue through onchain rewards. While the TON network offers a 4.8% annual staking yield, the token’s 40.7% year-to-date price decline poses a risk to the absolute value of these returns. The dual focus on buybacks and staking reflects a bid to diversify income streams, but success hinges on the long-term stability of TON’s price and network adoption.

Competitive pressures are intensifying, with entities like the TON Foundation and Kingsway Capital reportedly raising $400 million for rival treasury initiatives. This signals a shift from novelty to competition in the TON ecosystem, forcing TON Strategy to differentiate itself in a narrowing market. Coinbase’s observation that the sector is entering a “player vs. player” phase underscores the challenges of securing capital as investor premiums tighten.

The company’s reliance on TON’s performance remains a critical vulnerability. The token’s sharp decline in 2025, amid broader crypto market turbulence, has directly eroded the value of its reserves. Regulatory uncertainties further complicate its outlook, as potential restrictions on TON’s technology could depress both token and stock valuations. For TONX to regain momentum, it must demonstrate sustained value creation from its holdings while navigating a volatile and increasingly competitive landscape.