Ripple CEO Confirms No IPO in Sight, Reveals $285M Share Buyback Strategy

Published by

Qadir AK

January 11, 2024

Forget “moonshot” investments, Ripple Labs is betting big on itself. In a move aimed at shoring up investor confidence, the cryptocurrency giant has revealed plans to repurchase shares worth an impressive $285 million. The announcement seeks to emphasize the company’s strong financial position and enhance trust in its stability among investors.

What’s behind this bold move? Is it pure confidence, a calculated play, or something lurking beneath the surface?

Ripple’s $150 Million Tender Offer

As per insider information shared with Reuters, Ripple’s bold ‘tender offer,’ a $150 million buyback initiative, propels the company’s market valuation to an impressive $1.3 billion. This move is hailed as strategic, facilitating a controlled divestment and allowing investors to sell up to 6% of their partial ownership interests in an organized manner.

Dispelling market rumors, Ripple’s CEO, Brad Garlinghouse, has unequivocally clarified that the buyback offer does not imply an imminent Initial Public Offering (IPO) in the U.S. He cited regulatory uncertainties as the primary factor guiding this decision.

Insightful Disclosures

Garlinghouse has shared insights into the allocation of the earmarked $500 million for the share repurchase. This substantial sum is intended to cover the conversion of limited stock units into shares and address associated tax obligations.

At present, Ripple stands tall with a robust financial position, boasting over $1 billion in cash and a cryptocurrency portfolio exceeding $25 billion, primarily in XRP coins. Notably, a significant portion of the XRP stock is securely held in escrow, with a carefully crafted smart release plan unfolding monthly.

What Next?

This strategic move by Ripple comes on the heels of a significant legal victory against the U.S. Securities and Exchange Commission. The court ruling definitively asserts that XRP is not to be classified as securities, consequently excluding the sales of XRP from securities transactions.

Also Read: Ripple News : Is New ATH Approaching For XRP Price in 2024?

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.