Amid Crypto Winter, Nexo Commits Another $50M to Buyback Program

Bitcoin lender has sought advice from Citigroup on how to acquire struggling crypto companies in bear market.

Crypto lending platform Nexo has increased the size of its buyback program, giving the company more discretionary ability to buy back its native token to increase interest payments or make strategic investments inside future.

On Tuesday, Nexo disclosed that its board had committed an additional $50 million to buyouts, building on the company's initial $100 million buyout program launched in November 2021. The approval greenlights discretionary repurchase of up to $50 million of NEXO Tokens on the open market.

NEXO is the platform's native cryptocurrency, giving users the ability to earn interest and secure lower borrowing rates. The token currently has a market capitalization of $563.6 million and 24-hour trading volumes of $46.7 million, according to the Nexo website.

NEXO Market Cap Chart. Source: CoinMarketCap.

The company said it increased the size of its buyback program to demonstrate its "strong liquidity position" and willingness to invest in its community. The initiative will run for six months, with all redeemed tokens subject to a 12-month vesting period. Once the vesting period is satisfied, redeemed tokens can be used to pay daily interest via NEXO tokens or make strategic investments "via token mergers", the company said.

Nexo has been keen to demonstrate its financial strength amid the bear market, going so far as to seek advice from Citigroup on how best to acquire struggling crypto businesses. While the entire crypto industry was rocked by the implosion of the Terra ecosystem,