# MegaETH Buys Back Equity from Early Investors: The Block

*Author: Jack Inabinet*
*Published: Oct 17, 2025*
*Source: https://www.bankless.com/read/news/megaeth-buys-back-equity-from-early-investors-the-block*

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According to a report in [*The Block*](https://www.theblock.co/post/375090/megaeth-buys-back-equity-token-warrants-pre-seed-investors), upcoming high-performance Ethereum Layer-2 MegaETH has repurchased 4.75% of company equity and token warrants from its early pre-seed investors.

### What’s the Scoop?
- **Strategic Buyback:** The repurchase, covering both equity and token-linked warrants, was completed this summer at an undisclosed higher valuation than the company’s seed round, which raised $20M at a “nine-figure” valuation.
- **Timing Before Mainnet:** The move comes just ahead of MegaETH’s mainnet and token launch, expected before the end of the year. Buybacks of this kind are typically conducted post-launch, making this preemptive action unusual.
- **Buy Back Rationale:** Some pre-seed investors chose to exit due to fund closures. “We had investors that shut down their fund and tried to close all positions,” co-founder Shuyao Kong told *The Block*. “Since we don’t allow secondaries, the MegaETH team was the only available buyer.”
- **Community Sales:** MegaETH’s buyback follows a series of community-driven fundraising efforts, including: a $10M Echo round last December, the $13M The Fluffle NFT sale, and an upcoming public [ICO](https://www.bankless.com/read/news/megaeth-commences-mega-ico-registration-on-cobies-sonar-platform) through Sonar.

> MegaETH is glad to announce we have bought back 4.75% of the company from early investors. [pic.twitter.com/h3ObeBsoBF](https://t.co/h3ObeBsoBF)— MegaETH (@megaeth_labs) [October 17, 2025](https://twitter.com/megaeth_labs/status/1979171136693731839?ref_src=twsrc%5Etfw)