Mysten Labs, a web3 infrastructure company, announced on Friday that it has completed a $96 million repurchase of an equity stake in the company and warrant rights to purchase SUI tokens previously held by FTX Ventures Ltd. and affiliated entities.
FTX originally purchased the stake as part of Mysten’s $300 million Series B fundraise, which was announced in September 2022.
The transaction, which includes FTX’s entire equity stake in Mysten and all of FTX’s warrant rights to purchase SUI tokens, was approved by the United States Bankruptcy Court for the District of Delaware as part of FTX’s Chapter 11 bankruptcy proceedings.
In November 2022, FTX filed for US bankruptcy protection after experiencing a major crisis in the crypto industry. The platform struggled to raise funds to prevent collapse as traders withdrew $6 billion in just 72 hours, and Binance abandoned a proposed rescue deal.
Evan Cheng, Co-Founder and CEO of Mysten Labs, said: “We are very pleased to close this transaction, which speaks to the tremendous confidence we have in our capabilities, technology and partnerships, while also enabling us to preserve flexibility in how we operate our business.”
“We look forward to continuing to scale our platform and build alongside the most exciting and innovative web3 companies in the world.”
Mysten Labs comprises a group of highly skilled experts in distributed systems, programming languages, and cryptography, with its founders having previously held senior executive roles at Meta’s Novi Research and led the development of the Diem blockchain and Move programming language. The core objective of Mysten Labs is to establish fundamental infrastructure for web3.
By concluding this transaction, Mysten Labs will be able to advance its goal of establishing fundamental infrastructure for web3. The buyback of the equity stake and the warrant rights to obtain SUI tokens will offer the company greater maneuverability in its operations and highlight its trust in its abilities, technology, and collaborative associations.
The web3 space has been gaining significant traction in recent years, with decentralized finance (DeFi) and non-fungible tokens (NFTs) leading the way. Mysten Labs’ innovative approach to web3 infrastructure has the potential to unlock new possibilities and opportunities within the industry.
With this repurchase, the company is well-positioned to continue its growth and development, and contribute to the ongoing evolution of the web3 ecosystem.