Increased Ethena buybacks push overall financing elevated to $895M with assistance from StablecoinX

In a significant move, StablecoinX, a leading player in the digital dollar market, has announced a new ENA buyback program worth $310 million. The program, set to be executed over six to eight weeks through third-party market makers, is part of a larger strategy aimed at strengthening the company's position and aligning with the growing demand for digital dollar products.

The buyback program is backed by the Ethena Foundation, which retains veto rights on ENA sales by StablecoinX. This provision gives the Foundation control over future token movement, ensuring a strategic and coordinated approach to the management of ENA tokens.

The new raise will see StablecoinX purchasing approximately 3 billion ENA tokens. This buyback, combined with the liquid ENA contributed by investors, covers approximately 13% of the ENA supply. The structure of the latest raise mirrors that of StablecoinX's initial PIPE deal, further solidifying the company's commitment to this strategy.

StablecoinX recently raised an additional $530 million, bringing its total PIPE financing to approximately $895 million. The large-scale buyback program, in coordination with the Ethena Foundation, is expected to provide StablecoinX with access to more institutional channels and broader investor coverage.

In addition to the buyback program, StablecoinX plans to strengthen its leadership through new hires. The treasury strategy is designed as a long-term capital plan, with StablecoinX intending to compound ENA holdings over time, aligning with demand growth for digital dollar products.

The combined PIPE rounds now cover roughly 20% of ENA's circulating token supply. Ethena Labs' founder, G, considered the $530 million raise as a significant milestone, representing approximately 14% of ENA's circulating market cap. However, the identity of the founder or person considered as the founder of the Ethena project who goes by the name G on Twitter remains unclear in the available search results.

This expansion is expected to position StablecoinX well for future growth, with the company planning to follow the same structure for any future capital raises aimed at ENA purchases. The buyback program marks a strategic move by StablecoinX to consolidate its position in the digital dollar market and provide long-term value to its shareholders.

Increased Ethena buybacks push overall financing elevated to $895M with assistance from StablecoinX