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Ripple’s moves to repossess sold shares have put the company’s valuation over $11 billion, with its bag of cryptocurrencies estimated at over $25 billion.
Ripple Valuation at $11.3B
In a recent development, anonymous sources have confirmed that Ripple has taken steps to reclaim sold shares. In particular, the prominent payment firm will acquire $285 million worth of shares from early investors and employees.
The investment, or “a tender offer,” established Ripple’s valuation at $11.3 billion. It is crucial to highlight that investors are constrained to sell up to a maximum of 6% of their stake. This ensures a controlled and measured approach to the share buyback initiative.
Besides, Ripple has confirmed the tender offer and revealed its intention to allocate $500 million for the buyback. The funds will cover the costs of converting restricted stock units into shares and address tax obligations.
Furthermore, Ripple has indicated its commitment to conducting regular share buybacks, aiming to provide liquidity for investors. This strategic decision comes in the wake of the company’s shift in plans regarding the widely expected initial public offering (IPO).
In particular, Brad Garlinghouse, the Chief Executive Officer at Ripple, has emphasized that there are no immediate plans to go public in the U.S. He cited regulatory uncertainties as the primary reason for this cautious approach.
As Garlinghouse previously mentioned, the registration statement for its IPO must pass through the U.S. Securities and Exchange Commission (SEC). The Ripple CEO stated the SEC cannot endorse such a form while the firm is embroiled in a legal battle with the regulator.
Ripple’s $25B Crypto Portfolio
Meanwhile, Garlinghouse provided additional insights into Ripple’s robust financial standing in the confirmation statement regarding the buyback.
The CEO disclosed that Ripple currently boasts a substantial cash reserve exceeding $1 billion. Alongside, the firm has an impressive crypto portfolio valued at $25 billion, where XRP makes the largest share.
Significantly, the predominant portion of XRP tokens within Ripple’s crypto portfolio are under lock. According to records accessible through Ripple’s API, the firm has 40 billion XRP in escrow, with 5 billion in a spendable balance.