iFinex Unveils $150 Million Share Buyback Plan
iFinex, the owner of BitFinex cryptocurrency exchange and collaborator with Tether Holdings Ltd, has announced a $150 million share buyback plan. This move aims to regain control over the company’s operations and marks a significant milestone in its efforts to address its tainted history.
The $150 Million Share Buyback Plan
According to reports, iFinex is offering a buyback price of $10 per share for 15 million shares, representing 9% of the network’s outstanding capital. The company’s valuation stands at $1.7 billion based on internal calculations using various business metrics.
In 2016, Bitfinex suffered a hack in which approximately $71 million worth of Bitcoin was stolen. As a unique remediation approach, the affected users were given company shares equivalent to their losses through BnkToTheFuture.
The buyback plan is seen as a demonstration of strong positive performance over the past few years, and it relies on cash influx from one of iFinex’s subsidiaries. Shareholders who acquired iFinex stock in the 2016 swap arrangement have until October 24 to sell their holdings.
The Regulatory Conundrum
Bitfinex and iFinex have faced regulatory scrutiny in the cryptocurrency industry. Tether’s popular stablecoin, USDT, has been under severe regulatory scrutiny.
In 2021, Bitfinex and Tether were fined $42.5 million in the U.S. for allegedly providing false information about reserves supporting the stablecoin and illegally serving U.S. clients.
Despite these challenges, Tether has shown resilience and growth this year, outperforming other stablecoins and gaining more market share.
Hot Take: iFinex’s Share Buyback Signals Confidence and Redemption
iFinex’s $150 million share buyback plan is a significant move that demonstrates the company’s confidence in its performance and commitment to addressing past issues. By offering to repurchase shares from investors affected by the 2016 hack, iFinex aims to provide a sense of redemption and stability.
This buyback plan also comes at a time when regulatory scrutiny in the cryptocurrency industry is increasing. Despite facing challenges and fines, Tether has managed to maintain its position and even grow in market share.
Overall, iFinex’s buyback initiative signals a positive step forward for the company as it seeks to rebuild trust and strengthen its operations in the evolving crypto landscape.
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