Hong Kong-based iFinex, the owner of Bitfinex crypto exchange, has made an offer to repurchase $150 million worth of shares in an attempt to strengthen its control over the company, as reported by Bloomberg. The firm, which is valued at $1.7 billion, reached out to shareholders last month with a proposal to buy back 15 million shares at $10 per share, accounting for around 9% of iFinex’s outstanding capital.
Reasons Behind the Buyback Offer
iFinex stated that the buyback is a result of the company’s positive performance in recent years, according to a statement cited by Bloomberg. However, there has been no response from iFinex regarding this matter.
Bitfinex’s Troubles
In 2016, Bitfinex experienced a hack that led to the loss of $71 million in bitcoin. More recently, in August, a couple from New York pleaded guilty to money laundering conspiracy related to the Bitfinex hack.
Hot Take: iFinex’s Attempt to Consolidate Control
iFinex’s offer to repurchase shares highlights its efforts to consolidate control over Bitfinex. This move comes after facing significant challenges such as the 2016 hack and subsequent legal issues. By buying back shares, iFinex aims to regain investor confidence and strengthen its position within the company. It remains to be seen how shareholders will respond to this offer and what impact it will have on Bitfinex’s future.
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