Shares of digital asset treasury firm AVAX One collapsed by more than 32% following a regulatory disclosure that registered nearly 74 million shares held by company insiders as available for public sale. The filing, a Form S-1 submitted to the U.S. Securities and Exchange Commission (SEC), was made late on Tuesday, January 26, 2026.
The registration does not compel an immediate sale but creates a significant "overhang" on the stock, as the market priced in the risk of a large, dilutive block of shares hitting the open market. AVAX One, which is advised by SkyBridge Capital founder Anthony Scaramucci, holds AVAX tokens and other Avalanche ecosystem assets. The steep sell-off highlights investor sensitivity to potential dilution and negative signals from insider liquidity events.
The company had recently announced a plan to buy back up to $40 million of its own shares, a strategy aimed at supporting its stock price should the net asset value (NAV) of its holdings fall below its market capitalization. This move mirrors tactics used by other crypto-native public firms like BitMine and KindlyMD, which have also faced pressures as their stock prices lag behind the NAV of their token holdings.
Analysts note that while such registration filings are a standard part of the lifecycle for companies that went public via SPAC mergers, the reaction was magnified due to the volatile nature of the digital asset sector. The event serves as a stress test for the digital asset management industry, underscoring the challenges of balancing public market expectations, regulatory transparency, and insider liquidity needs.
