Crypto treasury buybacks are taking a new and unexpected direction in 2025, reflecting deeper shifts in the relationship between digital assets and corporate finance. Several companies, which once eagerly piled bitcoin and other cryptocurrencies onto their balance sheets, are now executing significant share buybacks, often borrowing capital to fund these repurchases. This trend comes as many of these firms see their stock prices fall below the market value of their crypto holdings, sparking questions about the sustainability of the “corporate crypto treasury” strategy.

The phenomenon traces back to the “Saylor trade,” a strategy made famous when traditional companies began buying large amounts of bitcoin for their corporate treasuries. For a time, these moves sent stock prices soaring, creating the perception that holding crypto was a ticket to outsized returns. In reality, as prices have cooled and market sentiment has shifted, cracks in the model have become apparent: roughly a third of listed treasury firms now trade at discounts to the value of their digital assets.

In response, companies are turning to buybacks as a defensive move to support their share price and narrow the gap between market value and crypto reserves. For instance, Metaplanet, a major holder of bitcoin, recently announced a large-scale buyback program along with a substantial credit facility. The company aims to limit shareholder dilution and stabilize its market-to-net-asset value, all while continuing to set ambitious targets for bitcoin accumulation.

Token buybacks in the crypto world generally work in one of two ways: revenue-driven programs or treasury-funded, one-off purchases. When backed by ongoing revenues, buybacks can help sustain confidence and reduce the liquid supply of tokens, contributing to price support. Treasury-funded buybacks, however, are more situational and may run out of steam if they’re not underpinned by continuous income streams.

These buying programs are closely tracked by investors, with many keeping an eye on official disclosures, analytics dashboards, and governance forums. The effectiveness of buybacks—whether in the form of stock repurchases by listed companies or token burns by crypto projects—ultimately depends on execution, timing, and market conditions.

The rise in buybacks highlights questions about the future of digital asset treasuries. While originally seen as a bold way to transform corporate balance sheets, the model’s limitations have become hard to ignore, especially as disconnects emerge between stock performance and underlying crypto valuations. As more firms reassess their strategies amid changing market dynamics, buybacks have become both a symptom of stress and a potential tool for restoring stability in a volatile sector.