StablecoinX Inc. took a significant leap, raising $360 million of capital in the form of a strategic investment to list ENA tokens and go public on the Nasdaq Global Market under the ticker symbol “USDE.”
A total of $60 million was invested via ENA token from the Ethena Foundation, reflecting strong institutional backing.
The company’s aggressive strategies are all based on positioning itself with the rise of digital dollars and the stablecoin sector that is being heralded as one of the most revolutionary trends in modern finance.
StablecoinX, to close traditional equity markets and the new crypto-finance arena, by targeting Nasdaq for its listing.
Strategic ENA Acquisition Plan to Commence Immediately through Public Markets
As part of its acquisition plan, StablecoinX will utilize $260 million in cash proceeds from the raise (after deducting certain expenses) to purchase locked ENA tokens from a holding company of the Ethena Foundation.
Locked tokens of this nature will be purchased pursuant to a structured and phased buying program where third-party market makers will make purchases of ENA on numerous public exchanges.
The buy-in will be executed systematically, at a rate of around $5 million per day for a six-week duration, representing approximately 8% of the circulating supply in ENA at current prices.
The systematic roll-out provides an ongoing market impact and aligns StablecoinX shareholders’ long-term goals with the same direction as the Ethena Foundation.
Also Read: Ethena and TON Introduce Synthetic Dollars to Telegram’s Crypto Economy
Ethena Foundation Maintains Control and Long-Term Hold Strategy
Notably, the Ethena Foundation has significant management of the ENA ecosystem and involves a right of veto over the eventual sale of ENA tokens by StablecoinX.
The management is anticipated to be used for maintaining token hoarding and preventing dumping into the market, as well as encouraging long-term value-based, not volume-based, strategy.
All future fundraising by StablecoinX to purchase additional locked ENA will take the same form: using new proceeds to purchase ENA in the spot market.
The development aligns with the company’s treasury policy, a multi-year strategy of stockpiling ENA tokens as they create value for shareholders over time, and rolling out digital dollars more quickly.
Also Read: Alchemy Pay & Ethena Labs Team Up For Easier Access To Crypto With Payment Via Visa & Mastercard
Market Reaction and ENA Price Action During Significant News
Despite the announcement of buyout and capital raise, Ethena’s original token ($ENA) has experienced a short-term decline.
At press time, $ENA is currently trading at $0.495 with a loss of 1.64% in the past 24 hours, but still increasing by nearly 50% in the past week.
$ENA has a circulating supply of 6.4 billion tokens and a market cap of more than $3.14 billion.
Market participants may be observing the $ENA high-profile takeover with bated anticipation.
Particularly considering the StablecoinX-focused $5 million per day purchasing strategy that is expected to influence price momentum.
Nevertheless, the larger picture is positive, considering institutional backing and strategic positioning in favor of a new age of maturity in the digital dollar infrastructure.
Also Read: Ethena Labs Partners with Deribit to Introduce USDe as Reward-Bearing Stable Margin Collateral