IP Strategy Authorizes 10% Share Buyback, Citing $IP Token Value

In a decisive move to return value to shareholders, IP Strategy’s board has authorized the repurchase of up to 1 million shares of its common stock. Based on the company’s 10,259,226 shares outstanding as of February 18, 2026, the full execution of this program would constitute a reduction of approximately 9.75% in the share count. The company plans to execute the buybacks through open market purchases or privately negotiated transactions, including via Rule 10b5-1 plans, at management’s discretion. This aggressive capital allocation strategy is framed not merely as a return of capital, but as a direct rebuttal to the market’s current valuation.

CEO Justin Stiefel explicitly linked the decision to a perceived market disconnect. “The Board’s decision to authorize a share repurchase program reflects its belief that the market does not currently take into account the inherent value of our 53.2 million $IP tokens, nor the growth in higher-margin recurring revenue anticipated in 2026,” Stiefel stated. The announcement positions the buyback as a tactical use of corporate funds to acquire what management views as deeply undervalued equity, betting on a future correction as the value of its digital asset treasury and new revenue models become more apparent to investors.

At the heart of IP Strategy’s investment thesis is its massive holding of 53.2 million $IP tokens, which it identifies as the largest independent ownership position. The $IP token is the native cryptocurrency of the Story Layer 1 blockchain, a network specifically designed to make intellectual property (IP) programmable. Story Protocol, backed by $136 million from notable venture firms including a16z crypto, Polychain Capital, and Samsung Ventures, launched its mainnet in February 2025. It aims to create a new infrastructure for the on-chain registration, licensing, and monetization of IP, targeting what IP Strategy calls the “$80 trillion programmable intellectual property economy.”

By holding $IP tokens as its primary reserve asset, IP Strategy offers public market investors a regulated equity vehicle for exposure to this nascent ecosystem. The company’s treasury is directly tied to the adoption and utility of the Story network, which enables creators and enterprises to turn media, data, and AI-generated content into tokenized assets with embedded, enforceable rights. This foundational role of the $IP token, combined with IP Strategy’s validator operations on the network, forms the core assets that management believes are not reflected in its current Nasdaq listing price.

Beyond its static token holdings, IP Strategy is implementing operational changes designed to boost profitability. A key initiative is the recent transition from self-custodied to third-party custodied validator work on the Story network. According to the company, this shift is expected to effectively double the yield generated from its validator operations to “10% or more annually for 2026.” This projected increase in high-margin, recurring revenue from network validation services is a second pillar supporting the company’s optimistic outlook and the rationale for the buyback.

CEO Stiefel connected these operational improvements to the broader capital return strategy: “When combined with the previously-announced streamlining and cost reduction plans for 2026, the implementation of a share repurchase program at this time reflects a very high degree of confidence in our long-term strategy and growth potential.” The company’s forward-looking statements caution that these expectations are subject to risks, including the volatility of both its common stock and the $IP token, as well as regulatory uncertainties surrounding digital assets. These risks are detailed in its filings with the Securities and Exchange Commission (SEC), including its Form S-1 registration statement and subsequent reports.

Ultimately, IP Strategy’s announcement is a multifaceted signal to the market. It combines a classic corporate finance maneuver—a substantial share repurchase—with a narrative deeply rooted in the convergence of traditional finance and blockchain innovation. The company is staking its capital on the belief that its unique position as a bridge between Nasdaq and the tokenized IP economy, powered by the Story Protocol and its $IP token, will drive future value that today’s market price does not yet capture.