Exodus Movement (tZEROATS:EXOD), a digital asset firm that issued shares under Reg A+ hitting the $75 million funding cap, says it will repurchase up to $2 million of its shares at a per-share price of up to $55. Currently, shares trade at $21 – rising by over $4 a share today on the news.
Exodus Movement raised $75 million from over 6800 individual investors in the issuance of 2.733 million shares, earlier this year. These digital securities began trading on the tZERO ATS in September. Exodus is a noncustodial crypto software platform.
JP Richardson, CEO and co-founder of Exodus, stated:
“The share repurchase program demonstrates our confidence in the growth trajectory of Exodus. Our treasury has expanded greatly over the past six months. We have seen exceptionally strong year-over-year financial performance as well as significant increases in the market value of our digital asset holdings. As such, we are in a position to return some capital to our shareholders.”
Exodus said it intends to execute share repurchases beginning on November 18, 2021, and the program will last through December 2022 or until $2 million of shares have been purchased and retired.
Officers and Directors of Exodus may purchase as part of this program as well. Their purchases, if any, will not count towards the $2 million cap.
James Gernetzke, CFO of Exodus, stated:
“The near doubling of Bitcoin prices since mid-year has added to our already strong balance sheet. We have over $150 million in liquid assets at today’s cryptocurrency prices, and we continue to aggressively invest shareholder capital to facilitate growth and enhance the user experience. This includes investments in integrating additional applications like FTX onto the Exodus platform and expanding our customer service team from approximately 30 team members at the beginning of the year to 90 today. We expect the share repurchase program to deliver additional value to shareholders over the long-term.”
For the nine months ended September 30, 2021, the Company currently expects revenue and net income of approximately $69 million and $29 million, respectively.
Exodus will publish its Q3 2021 earnings on or before November 17, 2021.