CEFI

Bitfinex's parent company iFinex plans stock buyback worth up to $150 million.

share
Bitfinex

Bitfinex's parent company, iFinex, recently proposed a stock buyback plan targeting shareholders who acquired company stocks when Bitfinex was hacked in 2016. The buyback program allows for the repurchase of up to 15 million shares.

iFinex, the Parent Company of Bitfinex, Proposes Stock Buyback Plan

According to a report by Bloomberg here, iFinex, the parent company of Bitfinex, proposed a plan to its shareholders on September 22nd of this year to repurchase 15 million shares at a price of $10 per share. This transaction would account for 9% of iFinex's outstanding shares and would value the company at $1.7 billion.

According to the proposal, this transaction will be contingent on iFinex receiving cash inflows from at least one of its subsidiaries.

In 2016, Bitfinex was hacked and approximately 119,754 BTC was stolen due to issues with a multisig wallet. At that time, Bitfinex proposed compensating users with BFX tokens and later redeemed BFX through the investment platform BnkToTheFuture to exchange for company shares. The buyback plan is now being offered to shareholders who originally received iFinex shares.

In a statement to Bloomberg, iFinex stated that this buyback is a result of the company's "strong performance" in recent years, and selling shareholders would reduce assets with relative illiquidity and lessen the need for iFinex to provide regulatory application and compliance information.

Tether and Bitfinex CFO Can Participate in Buyback

According to documents seen by Bloomberg, some directors of iFinex and its subsidiaries are allowed to participate in the buyback, including Giancarlo Devasini, the CFO of Tether and Bitfinex.

Furthermore, iFinex is willing to purchase all shares until reaching the limit, and shareholders must indicate by October 24th whether they are willing to sell their held shares to iFinex.