Very Important Update Concerning Ripple (XRP)

11 months ago 4

ARTICLE AD BOX

Ripple, the company behind the popular cryptocurrency XRP, is planning a $285 million share buyback from its earliest investors and employees, according to a Wednesday report from Reuters.

The tender offer would value the company at $11.3 billion, and only allow investors to sell up to 6% of their stake, anonymous sources told the media outlet.
Confirming the news, Ripple said it would spend $500 million on the buyback, covering both taxes and conversion costs on restricted stock units.
Ripple CEO Brad Garlinghouse clarified that the company has no plans to go public soon due to U.S. regulatory uncertainty. Similar share buybacks will become a common occurrence going forward to create investor liquidity.
The CEO said Ripple’s balance sheet is currently worth over $26 billion, mostly comprised of units of its cryptocurrency XRP.
XRP’s total market cap is roughly $31 billion, according to CoinGecko.
The asset nearly doubled in value after Ripple won its lawsuit against market regulators in March, with the court ruling that XRP is not a security. It has retraced all of its gains since then, however.
“Growing in the headwinds of the SEC lawsuit was certainly a challenge, but 95% of our customers are non-US financial institutions,” said Garlinghouse.
The CEO refused to disclose the size of Ripple’s payments business.