Shares of AVAX One (Nasdaq: AVX) collapsed over 32% Tuesday after the company filed to register 73.8 million shares for resale, effectively unlocking a massive liquidity exit for early insiders. The plunge to nearly $1.73 erases weeks of gains for the digital asset treasury firm, which counts SkyBridge Capital founder Anthony Scaramucci as a strategic advisor.
The Liquidity Shock
The sell-off was triggered by a registration statement filed with the SEC, paving the way for selling shareholders to offload up to 73.8 million common shares. While the filing does not mandate an immediate sale, the sheer volume, representing a significant multiple of the stock’s daily float, forced the market to price in imminent dilution.
Traders reacted violently to the overhang.
The filing, which enables early investors to resell restricted stock, has sparked investor fears about the potential for large-scale share sales… potentially depressing stock prices in thinly traded stocks.
The move blindsided retail investors who had rallied around the firm’s pivot from agriculture (formerly AgriFORCE) to an Avalanche-focused treasury strategy in late 2025. The stock, which often trades as a proxy for the AVAX token, decoupled sharply from the underlying asset’s performance.
Buyback Wall Breached
The crash severely tests the company’s capital allocation strategy. In November 2025, AVAX One authorized a $40 million share repurchase program intended to defend the stock price against discounts to Net Asset Value (NAV). Tuesday’s volume overwhelmed that buyback defense, suggesting the market is prioritizing the liquidity risk over the firm’s book value.
Institutional observers note the pattern: crypto-equity wrappers often suffer extreme volatility when lock-up periods expire, forcing market makers to widen spreads or exit positions entirely. For AVX, the “Scaramucci Premium” vanished the moment the exit door opened.
