In a strategic maneuver, Ripple Labs, the pioneering cryptocurrency firm behind XRP coins, has initiated a significant buyback of $285 million worth of shares from early investors and employees, according to news sources. This calculated move has propelled the company’s valuation to an impressive $11.3 billion.
Operating under a tender offer, investors are limited to selling only 6% of their stakes, maintaining a controlled liquidity in the market. Ripple Labs, a privately-held entity, confirmed the buyback and revealed plans to allocate $500 million for the repurchase. This fund will cover the conversion of restricted stock units into shares and associated taxes.
Brad Garlinghouse, Ripple’s CEO, emphasized the company’s commitment to regular share buybacks to enhance investor liquidity. Notably, despite its robust financial position, with over $1 billion in cash and a crypto portfolio exceeding $25 billion, Ripple currently has no immediate plans to go public in the United States due to regulatory uncertainties.
This strategic move comes on the heels of Ripple’s legal victory against the U.S. Securities and Exchange Commission, affirming that XRP sales on public exchanges do not constitute unregistered securities offerings. Positioned as a global leader since its inception in 2012, Ripple’s innovative payment system facilitates seamless cross-border transactions, supported by its substantial XRP holdings. The recent acquisition of Switzerland-based crypto custody firm Metaco for $250 million further underscores Ripple’s strategic growth amidst regulatory challenges.
As the crypto community eagerly watches Ripple’s bold financial moves, its XRP coin is currently trading at $0.590401 USD, reflecting a 4.62% increase in the last 24 hours. With a market cap of $32.01 billion, Ripple remains a force to be reckoned with in the ever-evolving cryptocurrency landscape.
