Why the Triterras stock broke this morning
Actions of Triterras (NASDAQ: TRIT) jumped as high as 17% this morning after the company announced a stock purchase program and provided an update to investors. The company is defending itself from a bearish report issued by short sellers. As of 1 p.m. EST, the stock had given up a large chunk of those gains and had risen only 3%.
Short seller Phase 2 Partners released a report a few days ago alleging that 75% of trades on Triterras blockchain-based The Kratos trading platform is connected to the executives of the company. Phase 2 Partners says it came to this conclusion after extracting the data from Ethereum, and estimates that only 6% of clients traded on the platform in November and December after a related company – Rhodium – came along. fell in financial distress. Both Triterras and Rhodium were founded by Srinivas Koneru, who is currently CEO of Triterras.
Triterras says the charge that “our volumes demonstrated the precipitous drop alleged in the report is false.” The platform has 66 traders and business remains strong, Triterras fired back. The company also claims that it correctly disclosed all related party transactions.
Triterras says recent volatility has created an “attractive opportunity” to buy back shares, so the board has authorized a $ 50 million buyback program. Koneru previously announced his intention to buy shares of Triterras on the open market, who had raised the stock, and the CEO has so far bought nearly 170,000 shares based on those intentions.
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