Ethena Initiates $260 Million Buyback of ENA Token to Boost Value

Ethena has initiated a substantial $260 million buyback of its native token, ENA, through a newly established crypto treasury firm, StablecoinX. This move is part of a broader $360 million capital raise aimed at strengthening ENA's position as a long-term strategic asset within the Ethena ecosystem. The buyback will be executed over six weeks, with daily purchases of approximately $5 million from the open market, equivalent to about 8% of ENA’s circulating supply. This aggressive approach signals Ethena's commitment to reducing the available tokens, which could potentially increase their value.

In addition to the buyback, $60 million in locked ENA will be allocated to StablecoinX, while $40 million is reserved for operational expenses. StablecoinX is designed to function as a reserve-focused entity, with no immediate plans to sell the acquired ENA tokens. Ethena has retained veto rights over any future disposals, ensuring that the reserves remain intact and can be used for additional spot market purchases if necessary. This strategic move underscores Ethena's confidence in the long-term prospects of ENA and its commitment to maintaining a stable and valuable token ecosystem.

The announcement of the buyback has already had a positive impact on ENA’s price, reflecting market optimism about the project’s future. This response from the market suggests that investors are bullish on Ethena’s strategy and believe that the buyback will contribute to the token’s long-term growth and stability. The initiative is part of a broader $360 million capital raise aimed at consolidating ENA as a long-term strategic asset. The buyback process will unfold over six weeks, with daily purchases of approximately $5 million from the open market. This amount represents about 8% of ENA’s circulating supply, indicating a substantial commitment to reducing the available tokens and potentially increasing their value. Additionally, $60 million in locked ENA will be allocated to StablecoinX, while $40 million is reserved for operational expenses. StablecoinX is designed to function as a reserve-focused entity, with no immediate plans to sell the acquired ENA tokens. Ethena has retained veto rights over any future disposals, ensuring that the reserves remain intact and can be used for additional spot market purchases if necessary. This strategic move underscores Ethena's confidence in the long-term prospects of ENA and its commitment to maintaining a stable and valuable token ecosystem. The announcement of the buyback has already had a positive impact on ENA’s price, reflecting market optimism about the project’s future. This response from the market suggests that investors are bullish on Ethena’s strategy and believe that the buyback will contribute to the token’s long-term growth and stability.