CoinShares 25% Buyback Plan May Recycle Shares to Employees Instead of Reducing Supply
CoinShares, a major crypto asset manager, has proposed a buyback authority that would allow it to repurchase up to 25% of its ordinary shares. However, this plan might not lead to a permanent reduction in the share count as previously thought.
The proposal combines two forms of capital flexibility: buyback and treasury-share authorities, with adoption of an employee equity plan. The filing lists 131,780,209 shares in issue and no shares in treasury at that time. It sets a purchase-price range of $0.01 to $20 per share.
The CoinShares buyback authority is not a commitment to use the full amount, as the company said it does not currently intend to use the full authority. Any purchases would depend on market conditions, its financial position, and competing investment opportunities.