Ripple, the firm behind the renowned cryptocurrency XRP, has announced plans to repurchase shares from its early investors. The company intends to carry out a $285 million share buyback, as reported by Reuters on Wednesday.
Despite the challenges posed by the SEC lawsuit, Ripple has managed to grow, with 95% of its customers being non-US financial institutions, according to CEO Brad Garlinghouse. The proposed tender offer would value Ripple at $11.3 billion, allowing investors to sell up to 6% of their stake.
Ripple confirmed that it would allocate $500 million for the buyback, which would cover both taxes and conversion costs on restricted stock units. Garlinghouse clarified that the company has no immediate plans to go public due to regulatory uncertainty in the U.S. He also indicated that similar share buybacks would become a regular occurrence in the future to provide liquidity for investors.
The CEO revealed that Ripple’s balance sheet is currently valued at over $26 billion, with the majority being units of its cryptocurrency XRP. CoinGecko estimates XRP’s total market cap to be approximately $31 billion. The value of the asset nearly doubled after Ripple won its lawsuit against market regulators in March, with the court ruling that XRP is not a security. However, it has since retraced all of its gains.
Garlinghouse declined to disclose the size of Ripple’s payments business.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Brad Garlinghouse |
| Companies | CoinGecko, Binance Futures, Reuters, Ripple |
| Currencies | XRP |
| Securities | None |
