Hong Kong-based company iFinex Inc., the parent company of cryptocurrency exchange Bitfinex, has proposed a $150 million share buyback. The move is aimed at consolidating its private operations in response to the increasing regulatory oversight in the cryptocurrency industry. iFinex, which shares board members with stablecoin issuer Tether Holdings Ltd., has offered to buy back shares at $10 each, with a total of 15 million shares. This represents approximately 9% of iFinex’s total outstanding capital and values the company at around $1.7 billion. However, the buyback offer is contingent upon iFinex receiving a significant cash inflow from one or more of its subsidiary businesses.
This share buyback proposal comes as Bitfinex continues to address a security breach that occurred in 2016, which resulted in the loss of around $71 million in Bitcoin. In response, Bitfinex issued BFX tokens to its users, which were later exchanged for iFinex shares. The buyback offer, which remains open until October 24, provides an exit strategy for investors in light of the evolving regulatory landscape. Both Tether and Bitfinex have faced regulatory challenges in the past, including a $42.5 million fine imposed by U.S. regulators in 2021. The cryptocurrency industry is under increasing scrutiny, with international regulatory bodies focusing on companies operating outside established frameworks. This move by Bitfinex highlights the changing dynamics and adaptive strategies in the sector.
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