Bitfinex Owner Proposes Repurchasing $150 Million in Shares from Shareholders

Hong Kong-based iFinex, the owner of the renowned cryptocurrency exchange Bitfinex, has made a strategic move to repurchase $150 million worth of shares in an effort to bolster its control over the company, according to a report by Bloomberg. The firm, which currently values itself at $1.7 billion, reached out to shareholders in late September, outlining its intentions and offer.

The proposal, disclosed in a document seen by Bloomberg, suggests a buyback of 15 million shares at a price of $10 per share, constituting approximately 9% of iFinex’s total outstanding capital.

The reasoning behind this significant share repurchase, as cited by iFinex, is the “positive performance” exhibited by the company over the past few years. The move reflects the company’s desire to consolidate its ownership and maintain a tighter grip on its operations and future direction.

iFinex, despite enduring a major setback in 2016 when Bitfinex suffered a devastating hack, seems to have turned the tide in its favor through consistent growth and effective risk management. The 2016 breach resulted in the loss of approximately $71 million worth of Bitcoin, a substantial blow to the cryptocurrency exchange.

In August, Bitfinex and iFinex found some degree of closure when a New York couple pleaded guilty to money laundering conspiracy in connection with the 2016 hacking incident. This legal development marked a significant step forward in addressing the aftermath of the hack and the loss of customer funds.

The share repurchase strategy is not only a testament to iFinex’s confidence in its future but also a move to strengthen the company’s control in an ever-evolving and competitive cryptocurrency market. This buyback reflects a sense of optimism and a proactive approach to corporate governance.

iFinex’s offer to repurchase shares at $10 each not only presents an opportunity for its existing shareholders to potentially realize a return on their investments but also highlights the company’s belief in its ability to create value moving forward.

The cryptocurrency market has experienced substantial growth and diversification in recent years, and iFinex aims to assert its authority in this dynamic space. This strategic move demonstrates a commitment to capitalizing on the positive momentum and performance of the company while building trust and confidence among its shareholders.

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