Ethena's buyback pace quickens, boosting overall funding to $895 million, thanks to StablecoinX.

In a significant move for the digital dollar ecosystem, StablecoinX has announced a massive $895 million buyback program for ENA tokens. This initiative, spanning over six to eight weeks, is part of a long-term capital plan aimed at aligning with the growing demand for digital dollar products.

The buyback program, facilitated by third-party market makers, will see StablecoinX allocate $5 million daily if ENA trades above $0.70. However, if the price drops below $0.70 or falls more than 5% within 24 hours, the allocation will double to $10 million daily. This dynamic deployment strategy is designed to respond to market fluctuations effectively.

The Ethena Foundation, the subsidiary behind the ENA token, retains veto rights on any sales of ENA by StablecoinX, ensuring control over future token movement. This decision-making power reinforces the alignment between the Ethena Foundation and StablecoinX investors.

The buyback program will tighten the ENA supply in the market, potentially impacting the price of the token. StablecoinX plans to use the funds to access more institutional channels and broader investor coverage, further bolstering its presence in the digital currency market.

The Ethena Labs founder compared the $530 million raised in the latest PIPE round to large-scale BTC and ETH buying, highlighting the significance of this investment. Together, the two transactions now represent close to one-fifth of the total ENA float.

At closing, StablecoinX's balance sheet is expected to hold more than 3 billion ENA tokens. The funds from the transaction will be used to purchase ENA from a subsidiary of the Ethena Foundation. The current ENA token holdings directly attributable to the Ethena Foundation through the ENA purchase initiative by StablecoinX involve acquiring locked ENA tokens from a subsidiary of the Ethena Foundation. These tokens will be bought on the spot market over the next 6–8 weeks as part of an expanded treasury strategy funded by the $530 million raised by StablecoinX.

In addition to this, StablecoinX also plans to strengthen its leadership through new hires, further solidifying its position in the digital currency market. The company plans to follow the same structure for future capital raises aimed at ENA purchases, indicating a continued commitment to the digital dollar ecosystem.

This ambitious buyback program is a testament to StablecoinX's faith in the potential of the ENA token and the digital dollar market as a whole. As the market continues to evolve, it will be interesting to see how this initiative impacts the ENA token and the broader digital currency landscape.