Ethena Massive Price Surge on StablecoinX’s $260M Buyback Plan

Ethena Pumps as StablecoinX Backs ENA Accumulation

A new Ethena treasury firm named StablecoinX aims to be listed on the Nasdaq to capitalize on the growing digital dollar trend, with plans to buy back ENA shares as the ENA price rises 8%. The news comes as Wall Street's crypto treasury fever grows stronger, expanding from bitcoin (BTC) to solana (SOL), ether (ETH), and other smaller cryptocurrencies.

Ethena Foundation Announces $360M Coin Buyback via StablecoinX

Source: X

The Ethena Foundation has established StablecoinX Inc., a new treasury company dedicated to stablecoins, in an audacious move into the public markets. According to the X post the firm would combine with TLGY Acquisition Corp. to go public. As part of the agreement, StablecoinX intends to spend $360 million on the acquisition and repurchase of Ethena's native token.  The Ethena Foundation will begin a repurchase of ENA tokens on public markets of around $5 million per day for the next six weeks, representing almost 8% of ENA's circulation supply at current pricing.

 Ethena-Backed Firm Plans Nasdaq Listing Under 'USDE' Ticker

On Monday, TLGY Acquisition Corp., a shell company registered on the Nasdaq, and SC Assets, a startup validator operator focusing on Ethena, announced their intention to merge to create a new business that will be traded under the "USDE" ticker. According to a press statement, the deal is anticipated to finalize in late 2025.

Pantera Capital, Dragonfly, Galaxy Digital, Polychain, and Blockchain.com are some of the investors from which StablecoinX aims to raise $360 million from in a private investment in public equity (PIPE) round, the businesses said.

A total of $260 million in cash that may be used to buy more locked ENA from an Ethena Foundation subsidiary and $100 million in discounted locked-up tokens make up the new capital.

The foundation stated that it is initiating a token repurchase operation to purchase $260 million worth of ENA tokens straight from exchanges via the subsidiary.

After Circle and Tether, it is the third-biggest issuer of digital currencies on the chain. This treasury attempt contributes to StablecoinX's goal of producing shareholder value by acquiring a strategic investment in a protocol at the forefront of the growing worldwide demand for digital currency.

ENA Price Surges 8.44% as Investors React to Token Buyback

Source: Coinmarketcap

ENA's price immediately increased in response to the announcement, indicating that the market was confident in the project's long-term prospects. The current price is $0.5335 USD. In December 2024, the token reached its highest point ever, $1.52. Due to ENA's institutional relationships, $260M repurchase, and 52% weekly increase, traders and investors are positive on the company; nevertheless, they are still wary of resistance levels and whale-driven volatility.

Ethena’s Funding-Rate Harvesting Model Boosts ENA and USDe Appeal

It is a DeFI protocol that is well-known for its $6 billion "digital dollar," or USDE. It makes money by owning spot Bitcoin, Ethereum, and SOL and shorting a corresponding number of derivatives to harvest the funding rate. ENA, the native token of the protocol, is a governance token that grants its holders the ability to participate in decision-making.

With a massive increase over the previous week, token has been among the top-performing cryptocurrencies in recent days. The protocol is also benefiting from increasing interest in USDE as yields rise as a result of growing perp financing rates, in addition to the additional demand brought about by the treasury strategy and token buyback.