Hong Kong-based iFinex Inc., the parent company of Bitfinex, has unveiled an ambitious plan to repurchase $150 million worth of its shares, according to a report by Bloomberg. This move by the company, valued at $1.7 billion, involves the repurchase of 15 million shares priced at $10 each, which represents approximately 9% of its total outstanding capital. The decision to initiate this share buyback comes on the back of iFinex’s impressive performance in recent years.
The share buyback initiative is primarily aimed at shareholders who originally acquired iFinex shares through BnkToTheFuture, following a significant setback in 2016 when Bitfinex suffered a major bitcoin hack that resulted in a loss of $71 million. Notably, a New York couple connected to this hack has recently pleaded guilty to involvement in a money laundering conspiracy.
iFinex, which is also closely associated with Tether Holdings Ltd., is making this strategic buyback move against the backdrop of ongoing regulatory scrutiny and increasing demands for information from shareholders regarding Bitfinex Group’s regulatory applications. The company’s objective is to secure a greater degree of control and address concerns related to illiquid investments through this share repurchase program, which, notably, does not have a specified threshold and relies on a cash infusion from one of its subsidiaries.
It is worth noting that both iFinex and Tether Holdings have previously been fined $42.5 million in connection with issues related to the USDT stablecoin. Nevertheless, Tether has been actively deploying its excess capital in investments in new projects, such as Northern Data Group.
