The Gnosis Token (GNO) experienced a significant 20% price increase within three days after Thanefield Capital announced a $30 billion buyback proposal. On May 17, the GNO token was valued at $266, but it climbed to $320 three days later. However, at the time of writing this article, the price had dropped to $311. GNO is currently ranked 111th in the global cryptocurrency market with an average daily trading volume of $8.9 million.
In an effort to align its market value with its intrinsic book value, a crypto fund called Thanefield Capital has proposed a large-scale share buyback. They suggest that Gnosis DAO utilize $30 million from its treasury over a six-month period. Thanefield Capital believes that this transaction will increase the value of the GNO token, which they argue is undervalued compared to its book value. “We propose initiating a substantial buyback program to correct this disparity,” stated Thanefield Capital.
According to Thanefield Capital, Gnosis holds $630 million in non-GNO liquid assets and $100 million in venture capital investments. On the other hand, the total market value of GNO is approximately $424 million, based on its circulating supply of 1.53 million tokens.
The proposal has already been approved by the Gnosis community, with 12 out of 14 governance forum voters in favor of the transaction. Gnosis co-founder, Martin Köppelmann, also supports the proposal and emphasizes the need to link the buyback to a growth strategy.
Once approved, the buyback program will follow a two-pronged strategy. The first approach will allocate $15 million for the purchase of GNO tokens over a six-month period, which is expected to create a daily buy pressure of approximately $83,333. The second approach will involve a discretionary allocation of $15 million for optimized purchases based on market conditions. Karpatkey, an on-chain asset management project, will oversee the transaction.
In addition to managing Gnosis Chain and CoW protocol, Gnosis DAO also holds a significant stake in Ethereum multisig provider Safe. Despite these assets, Thanefield Capital argues that long-term GNO holders have not reaped substantial benefits from Gnosis DAO’s product developments, investments, and treasury management. However, if the proposal is successfully implemented, Thanefield Capital believes it will realign the market value of GNO and enhance market perception, ultimately benefiting long-term holders.
As of May 20, approximately 50,000 DAOs collectively held $30 billion in assets. According to Beincrypto, Gnosis ranks fifth among DAOs based on treasury size, with over $630 million in assets. It is second only to Mantle in terms of non-native marketable tokens.
Source: Cryptopolitan Reporting By Enacy Mapakeme
