StablecoinX raises $530M to boost ENA buybacks, driving price up 14% and expanding its DeFi market dominance.
StablecoinX has secured an additional $530 million through PIPE (private investment in public equity) financing. This brings its total funding to around $895 million. The relocation is within a broader initiative by StablecoinX to expand its token portfolio and its dominance in the realm of digital assets.
StablecoinX to Hold 3B+ ENA After PIPE Round
Ethena Labs has stated that StablecoinX will further purchase locked ENA tokens in the Ethena Foundation or affiliates. The funds obtained in this PIPE transaction will be utilized to purchase open market spot ENA tokens. This has already begun to impact the price of the token. Soon after the announcement, ENA increased its price by 14%.
Ethena Labs also leaked information about an organized buyback. When the price of ENA remains higher than $0.70, then the team will purchase an equivalent of $5 million ENA per day. In the case of a price below $0.70 or a decline of more than 5 percent over 24 hours, the buybacks will rise to $10 million per day. This is a plan to stabilize the price of the token and increase investor confidence.
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The buyback program will be operated by the Ethena Foundation with the use of third-party market makers. The foundation will purchase about 310 million dollars of ENA during the next 6 to 8 weeks. This action supports the alignment of the shareholders of Ethena Foundation and StablecoinX.
Based on this second PIPE financing round, StablecoinX will have more than 3 billion ENA tokens by the time the deal closes. Such a huge token balance will enable the firm to tap new institutional investors and attract new leadership talent. It enables StablecoinX to increase its influence in the digital finance market, too.
StablecoinX Buybacks Now Cover 13% of ENA Supply
The new buyback program and the ENA tokens that were contributed by outside investors would represent about 13% of the amount of supply in circulation in the market today at the current market prices. This comes on top of the 7.3% of supply already purchased in the prior PIPE transaction in the last six weeks.
Notably, Ethena Foundation has retained the power to prevent any sale of ENA by StablecoinX. This keeps token sales on track with long-term objectives and does not interfere with the market.
The plan of StablecoinX is one of the long-term plans to expand its power in the rising need of digital dollars. The company intends to increase the value of ENA per share by means of continuous capital expenditure on the purchase of locked ENA and the purchase back of a spot ENA. This is helpful to the platform and the shareholders in the long run.
The recent updates can be described as a powerful effort on the part of both StablecoinX and the Ethena Foundation. Both of them are collaborating to promote the ENA token, find new investors, and create a strong base to continue the development of decentralized finance in the future.
